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The whole internet has been fooled by RAVE!! The main players hold 99% of the chips in their hands!
RAVE’s “out-of-this-world” trend (pumping to 6, a market cap of 10 billion, a negative fee rate) is a typical crypto-world setup of **“hunting shorts” (Short Squeeze)** and **“high-level position controlling”**.
You think the main players should start unloading now, but from the operator’s perspective, this isn’t the end of selling—it’s actually the moment with the richest profits and the most satisfying harvesting. Here is the underlying logic behind why the main players keep pushing the price higher:
1. Negative fee rate is the main players’ “super fuel”
With a current funding rate of negative 0.6%, it’s absolutely outrageous. This means that every 8 hours, all the market’s shorts have to pay the longs (the main players) 0.6% interest.
• Free money: If the main players hold a $5 billion long position, with three funding-rate events a day, they can just lie back and earn $90 million in interest in one day.
• Forced-short loop: The more shorts think, “It’s gone up so much—it should fall,” and crazily open shorts, the more negative the funding rate becomes. The main players only need to use a small amount of spot capital to keep the price from falling, and even just nudge it slightly higher—then the shorts will be forced to liquidate due to insufficient margin (i.e., get liquidated).
2. Short liquidations = the main players’ “passive bag holders”
• In the futures market, short liquidations essentially amount to the system forcibly buying to close.
• Painless unloading: If the main players want to unload, they can just sell to retail directly, which would crash the price. But if the pump triggers liquidations, the main players can use the long positions they hold to hedge against these “forced buyers.” The shorts’ corpses are the liquidity the main players use to unload.
3. A $10 billion market cap is a “psychological roundup”
When the market cap reaches a round-number threshold like 10 billion USD, the market splits into two camps:
• Retail investors fear the top and open shorts: This is exactly what the main players want (it contributes to the funding rate and the liquidation positions).
• Quant bots follow the trend: At this kind of market cap level, many quantitative strategies usually get triggered into “momentum breakout” buys. The main players can use this to keep market activity up and attract even more capital in.
Advice: This kind of “monster coin” at a market cap like this has long since moved beyond fundamentals. If you don’t have a position, never open shorts just because you’re “unwilling.” If you do have a position, it’s recommended to take profits in batches, because once this level of bubble bursts, the speed of the pullback will be far beyond what you can imagine. 6 might not be the top, but it will definitely be where the blade dance happens. $RAVE #Gate广场四月发帖挑战
I also made a trade yesterday when I was feeling impulsive, holding onto it until now,
I don't know what to do 😂