📈A very interesting chart is this one of perps: heatmap provides a temporal analysis of the funding rate, potentially anticipate trend reversals or excesses in the market.

∎ Positive Funding Rate: long positions pay shorts (perpetual contract price is higher than the spot price).
∎ Negative Funding Rate: short positions pay longs (perpetual contract price is lower than the spot price).

-Warm colors (🟡, 🟠, 🔴): long predominance ➡️ high risk of long liquidations. Positive funding rates suggest that long positions dominate the market, with a higher cost to keep them open. It is a sign of bullish sentiment, but a funding rate that is too high can signal an overheated market or close to a possible correction.

-Cold colors (🟢, 🔵, 🟣): short predominance ➡️ indicate negative funding rates. In this scenario, short positions (sells) prevail, reflecting a bearish sentiment.

Heatmap: https://www.coinglass.com/FundingRateHeatMap