What is this indicator?
A fee exchanged between long and short traders in perpetual futures contracts to keep the contract price close to spot. A very positive funding rate usually signals crowding among highly leveraged long traders.
How to read the chart
Sharp changes or a move outside this metric's normal range often coincide with important price turning points, and it's used as a secondary confirmation alongside technical analysis.
Practical tip
On-chain data is best used to complement technical analysis, not replace it; interpreting a single metric in isolation can be misleading.