Looking only at price can make you miss a lot of information. $STBL 15-minute open interest: +4.55%; price: +0.49%. Viewed together:
Open interest rises, price rises: new longs are actively entering.
If open interest keeps climbing, watch whether the funding rate is also heading toward an extreme. Do you use open interest as a reference?
Open interest rises, price rises: new longs are actively entering.
If open interest keeps climbing, watch whether the funding rate is also heading toward an extreme. Do you use open interest as a reference?