Prom ($PROM) remains one of the cryptocurrency market’s strongest-performing assets, gaining 48% in the past 24 hours.
The latest surge extends a broader bullish trend that has developed over several weeks. According to the CoinGlass performance chart, $PROM has risen 176% over the past seven days and 326% over the last 30 days.
Capital inflows support the $PROM rally
$PROM’s current market outlook remains bullish, with capital flowing into both spot and perpetual markets. However, funding data indicates that market positioning could influence the asset’s direction in the near term.
At the time of writing, the market had recorded approximately $5.47 million in net inflows, supporting buying activity. The sustained flow into the buy side of the perpetual market suggests that upward momentum could continue.
Netflow data shows that traders recorded approximately $16.8 million in netflow over the past five days. Total buying reached about $463.89 million, compared with roughly $480.72 million in selling.
Capital also moved through the spot market, although the flow was smaller over the shorter measurement period. During the last 12 hours, the spot market recorded approximately $239,940 in netflow and around $7.13 million in buying volume.
Negative funding rate raises sell-off risk
Despite the strong gains and continued inflows, the broader market data contains a warning sign: $PROM’s funding rate has turned negative.
The funding rate indicates which side of the derivatives market is dominant by measuring whether long or short positions are leading. According to the CoinGlass chart, short positions currently have the upper hand, with the funding rate at -0.0009%.
The sudden shift suggests that some traders are positioning for $PROM’s price to decline from its current level. Similar instances of negative funding have occurred before, with previous episodes coinciding with price corrections before the asset resumed its rally.
If the funding rate falls further and remains negative for several days, $PROM could face a significant drop from its current levels.
Bottom line: $PROM has gained more than 300% in 30 days as strong momentum and capital inflows drive its rally. However, negative funding points to increasing short positioning and raises the risk of a price correction if bearish pressure persists.
