Prom Soars Over 300%, But Negative Funding Rate Raises Red Flags

Prom (PROM) has seen an explosive rally over the past month, with its value surging by over 300% in just 30 days. This significant gain comes on top of a 48% increase in the past 24 hours alone.

The asset's performance can be attributed to weeks of bullish momentum in the market, with PROM recording a 176% gain in the past seven days and a staggering 326% increase over the last 30 days, according to CoinGlass' performance chart.

While capital flow is still bullish, with a net inflow of roughly $5.47 million supporting the buy side at the time of writing, there are warning signs that investors should be aware of.

The funding rate has turned negative, indicating that shorts have taken over and are betting on a price drop. If this trend continues, it could lead to a significant correction in PROM's value.