Funding rates relative to price trend
Funding rates are the mechanism by which derivatives exchanges close the gap between spot and perpetual swap markets.
Positive funding rates suggests speculators are bullish and long traders pay funding to short traders. Highly positive funding rates suggests that there may be excessive leverage in long positions.
Negative funding rates suggests speculators are bearish and short traders pay funding to long traders. Highly negative funding rates suggests that there may be excessive leverage in short positions.
Sources of perpetual swaps (non-expiring futures) funding rates data are: