Some parameters you must pay attention to, such as the one below

Changes in funding rates can also indicate shifts in market sentiment and price movements.

Funding rates are fees set by cryptocurrency trading platforms to maintain the balance between contract prices and the underlying asset prices, typically applicable to perpetual contracts.

They serve as a mechanism for transferring funds between long and short traders; the trading platform does not charge this fee. It is used to adjust the cost or收益 of holding a contract, keeping the contract price close to the underlying asset price.

When the funding rate is 0.01%, it indicates the baseline rate.
When the funding rate exceeds 0.01%, it signifies a generally bullish market.
When the funding rate is below 0.005%, it indicates a generally bearish market.

Therefore, we can also predict the shift in market sentiment between bullish and bearish by analyzing changes in the funding rate, providing guidance for contract trading directions.