The recent trend of the PIPPIN coin is quite interesting. The changes in the funding rate can indicate a lot of issues - it has risen from nearly negative to the current negative 0.36%/hour, which is a significant increase.

The logic behind it is actually very clear: after a leading trader continuously increases their position, the funding rate starts to rise sharply. The maintenance of this high funding rate directly affects the downward space of the coin price. You may have noticed that the voices singing bearish in the square have basically disappeared, and instead, a bunch of bulls have rushed in.

The game here is very realistic. Large holders need time to accumulate, and the high funding rate can suppress short positions from closing, thereby locking the price within a range. As long as the position holders do not actively close their positions, this high rate pattern can be maintained, making it difficult for the coin price to experience a significant decline—this is the rule of perpetual contracts.

In the past few days, friends who followed the long positions have indeed made quite a bit of profit. But this has also exposed a core issue: the sustainability of the entire market is actually tied to the intentions of a few major players. The moment they close their positions, the funding rate will quickly drop, and the market reaction at that time could be very intense. In this environment, going long is essentially taking advantage of a relatively strong short-term wave - but the premise is knowing when to exit.