SYN Long Squeeze Alert! Price Drop Expected as Funding Dries Up

SYN is experiencing a classic long squeeze setup. The price has risen sharply (66.41% in 24 hours), attracting more long positions. Simultaneously, the average daily funding rate is deeply negative at -5.847%, meaning shorts are paying a hefty premium to maintain their positions. This unsustainable situation encourages profit-taking from existing longs, as the funding burden becomes too high.

The combination of a rising price and highly negative funding rates creates a vulnerable scenario. As longs begin to close their positions to secure profits and avoid further funding payments, the resulting selling pressure can trigger a cascading effect. This can lead to a rapid and significant price decline as stop-loss orders are triggered and more longs rush to exit.

Key price levels to watch include immediate support at around $0.105, followed by stronger support near $0.095 and $0.09. A break below these levels would confirm the long squeeze and likely accelerate the downward trend. Resistance levels are less relevant in this scenario, but previous highs around $0.115 could act as psychological resistance during any temporary rallies.

While other coins may also have negative funding rates, SYN's strong recent price surge and substantial open interest ($4.67M) make it a prime candidate for a long squeeze. The extremely negative funding rates on Bybit (-9.551%) suggest concentrated short positions on that exchange, potentially exacerbating the squeeze.

This scenario would be invalidated if the funding rate turns positive and remains positive for a sustained period (e.g., 6-12 hours). Additionally, if large buy orders appear and absorb the selling pressure from profit-taking longs, the upward momentum could continue, defying the long squeeze setup.