Aave, The Graph and Decentraland could see significant spikes due to notable declines in their funding rates.
According to data provided by Santiment, the Binance funding rates for Aave (AAVE), The Graph (GRT) and Decentraland (MANA) declined to the negative zone, each standing at -0.018%, -0.014% and -0.021%, respectively.
The indicator shows that all three tokens are witnessing a significant surge in their short trading positions.
An asset’s price usually goes the opposite way when the funding rate falls into the negative zone.
In this case, according to Santiment, AAVE, GRT and MANA could surge due to the potential liquidations of short positions.
On Sept. 11, AAVE reached a two-year high of $160, thanks to its three-day price surge. The asset has been consolidating between $147 and $149 over the past day.
AAVE is down by 1.7% in the past 24 hours and is trading at $148. The token’s market cap is currently hovering at $2.2 billion, making it the 36th-largest cryptocurrency. The daily trading volume around AAVE also cooled down and decreased by 12%, currently sitting at $370 million.
GRT has been constantly declining since March, when it reached a two-year high of $0.49. The Graph gained 3% over the past 24 hours and is currently changing hands for $0.14. GRT is the 51st-largest token with a market cap of $1.3 billion.
MANA witnessed a quite similar momentum to GRT and has been struggling to sustain a strong bullish momentum since March. The asset surged 3.2% in the past 24 hours and is trading at $0.27 at the reporting time. Its market cap surpassed the $500 million mark, securing the 106th spot.
Despite the bullish indicator, it’s important to look out for macroeconomic events that could change the direction of financial markets.
