Smart Money Eyes Market-Neutral Trades as ADA AXS See Unusually Low Funding Rates HEAD TOPICS

Smart Money Eyes Market-Neutral Trades as ADA AXS See Unusually Low Funding Rates

10/21/2022 5:08:00 PM

Traders can purchase ADA perpetual contracts and simultaneously sell ADA tokens in the spot market to safely pocket the funding rate one expert said

Source

CoinDesk

Traders can purchase ADA perpetual contracts and simultaneously sell ADA tokens in the spot market to safely pocket the funding rate one expert said Reporting by godbole17 Traders can purchase ADA perpetual contracts and simultaneously sell ADA tokens in the spot market to safely pocket the funding rate one expert said While you continue to fret over the broader market lull, remember there are always opportunities out there and they often present themselves in different ways.For instance, holding a short position (a bearish bet) in the perpetual futures market tied to Cardano's ADA and play-to-earn giant Axie Infinity's AXS token has become unusually costly, creating a window of opportunity for market-neutral traders to make attractive returns, according to Markus Thielen, head of research at strategy at Matrixport, a crypto services provider with $10 billion in assets under management. Read more:
CoinDesk » Cardano (ADA) Price Analysis for October 21 Cardano (ADA) May Fade into Obscurity Like EOS, Top Trader Claims Price analysis 10/19: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, MATIC, SHIB XRP and Cardano (ADA) Slowly Becoming Bullish, Indicator Shows

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Sterling rallied on Thursday and investors reined in their bets on a big Bank of England interest rate hike in November as UK Prime Minister Liz Truss announced her resignation just six weeks after she was appointed. Read more >> godbole17 Hehe, overpriced S with no practical use go down :) Cardano (ADA) Price Analysis for October 21Has ADA reached the oversold zone yet? CardanoStiftung ADAcoin_ Cardano cardano Cardano_ emurgo_io CardanoStiftung ADAcoin_ Cardano Cardano_ emurgo_io addr1q8s8jzf4036h4qdt7qk2zkgpwfy88y9m230gc4gstauh3ekyg9qlzhlmc2cq8sft0rwyl3h9pcnrrh25tt45sn0r9vaq269su6 من ADAرا به قیمت 2.7دلار خریده ام خیلی درضرر هستم CardanoStiftung ADAcoin_ Cardano Cardano_ emurgo_io I wish someone showed me this earlierr CardanoStiftung ADAcoin_ Cardano Cardano_ emurgo_io Theyy don’t want you to know thiss? Cardano (ADA) May Fade into Obscurity Like EOS, Top Trader ClaimsCardano and Solana could see fate of EOS, according to popular cryptocurrency trader and analyst u guys, whoever wrote this has no idea what .cardano is. u guys are funny, 4 real now. 'fAdE inTo oBsCuriTy' 💀🤡 -u.today 2022 Price analysis 10/19: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, MATIC, SHIBAlthough Bitcoin remains range-bound, altcoins are showing signs of divergence, but it’s unclear which direction price will take. XRP and Cardano (ADA) Slowly Becoming Bullish, Indicator Shows$XRP and $ADA are expected to become more bullish in Q4 of this year, according to social volume indicators 😂😂😭😂😂😂😂 follow the mass I recall the 5 to $10 predictions for ADA by early 2022. I suppose we shall see. Feud with tribes threatens Oklahoma governor’s reelectionMany of the Native American tribes based in Oklahoma have played a role in state politics for decades, often quietly and behind the scenes. This year, many are wielding their considerable influence more openly to oppose reelection for GOP Gov. Kevin Stitt. 'More like Kevin Shit' -opposition slogan It's a long walk to freedom What is this now, the third time you've ran this story today? Desperation is a stinky cologne. on Twitter While you continue to fret over the broader market lull, remember there are always opportunities out there and they often present themselves in different ways.are again in the red zone.Cardano (ADA) will likely see the same fate as such has-beens as EOS, Litecoin (LTC) and Bitcoin Cash (BCH).) recovered and closed above the 20-day EMA ($0. For instance, holding a short position (a bearish bet) in the perpetual futures market tied to Cardano's ADA and play-to-earn giant Axie Infinity's AXS token has become unusually costly, creating a window of opportunity for market-neutral traders to make attractive returns, according to Markus Thielen, head of research at strategy at Matrixport, a crypto services provider with $10 billion in assets under management. In a note sent to clients early Friday, Thielen said ADA's annualized funding rate, or the cost of keeping long (bullish)/short (bearish) positions open, has dropped to an average of -14% across major exchanges – a rare occurrence in the past eight months.92% over the last 24 hours. As a result, traders can purchase ADA perpetual contracts and simultaneously sell ADA tokens in the spot market to safely pocket the funding rate. Once a fixture in the top 10,"the silver to Bitcoin's gold" is now struggling to hold onto its 20th position on CoinMarketCap. The funding rate is charged every eight hours.3343, formed by its false breakout. A negative rate, as in ADA's case, means positioning is skewed bearish and short sellers are paying longs to keep short positions open. Source: TradingView The price turned down sharply and slipped below the 20-day EMA on Oct. This chart shows perpetual funding rates for major cryptocurrencies. DOGE and SHIB Price Analysis for October 20 If the decline continues, there are chances to see ADA at around the $0.45% from its record high. (Source: Matrixport) So, suppose an entity opens a long position in the ADA perpetual futures market right now. In that case, it will receive an annualized funding rate of 14% – an attractive yield, considering the U. Cardano (ADA) has broken yesterday's low at $0.S. In early January, Ethereum co-founder Vitalik Buterin admitted BCH was"a failure. 10-year Treasury note yields just over 4%. If buyers cannot return above it by the end of the day, one can expect a further drop to the $0. On the upside, the first sign of strength will be a break and close above $0. The long trade, however, is unhedged. If ADA's price tanks, the resulting loss could be more significant than the 14% yield generated from the funding rate. On the weekly time frame, Cardano (ADA) reached the far retest level at $0. The entity can eliminate the risk by selling ADA tokens in the spot market, thereby creating a market-neutral position. "Long ADA Perp at -14% to -23% discount vs. At the moment, one should pay attention to that mark as, if the bar closes below it, the accumulated strength might lead to the test of the $0. Short Cardano's ADA spot Tokens," Thielen recommended in a client note. ADA/USDT In a strong trend, the relief rally usually lasts between one to three days and that is what happened in Cardano ( ). "You can currently make 14% profit by purchasing perpetual future, borrowing the ADA tokens from a firm like Matrixport, and selling those. ADA is trading at $0. If and when the spot price and perpetual futures converge, you should make a 14% profit return," Thielen told CoinDesk. Note that the rate at which tokens are borrowed needs to be lower than the funding yield, or else the market-neutral strategy will yield a loss.. ADA traded at 35 cents at press time, down 2% on the day. The token has lost over 20% since Cardano implemented the Vasil on Sep 26, seeking to boost security, scalability and transaction speeds. If this support also cracks, the selling could accelerate and the pair may plunge to $0. AXS funding rate drops to -56% The bear grip around AXS has strengthened, pushing the funding rate to a whopping -56%, as 10 million tokens belonging to insiders and early investors will be released into the market soon. A market-neutral strategy of buying AXS perpetual contracts and selling borrowed AXS tokens will earn an annualized return of 56% (excluding the cost of borrowing AXS tokens). According to Thielen, the token unlock could happen next week. "While the exact date is determined by the transaction block number, by some estimates, the vesting period ends approximately around Oct 24-26," Thielen said. Read more about . A break above this level could point to a potential trend change.