AAVE has made an interesting move over the past 15 minutes: the price is up 1.06%, volume has surged to 1.88×, the taker buy/sell ratio is 1.60, and net taker buying is 22.9%—buyers are really pushing it.
But looking closely at OI, 15-minute futures OI is down 0.03%, while the 1-hour figure is only up 0.04%. The notional change is just a few hundred thousand U. Rising prices alongside falling OI is a classic short-covering rally, not new longs entering. The funding rate is also still near the high end of its recent range, which means leverage costs for longs are substantial.
The closing price has just broken above the top of the range formed by the last 20 five-minute candles, and 24-hour trading volume is 98.66M. Be careful about chasing longs in this setup: prices pushed up by short covering can easily lose momentum once the covering is done. Unless new longs come in and OI picks up, this is just a short-term spike.
But looking closely at OI, 15-minute futures OI is down 0.03%, while the 1-hour figure is only up 0.04%. The notional change is just a few hundred thousand U. Rising prices alongside falling OI is a classic short-covering rally, not new longs entering. The funding rate is also still near the high end of its recent range, which means leverage costs for longs are substantial.
The closing price has just broken above the top of the range formed by the last 20 five-minute candles, and 24-hour trading volume is 98.66M. Be careful about chasing longs in this setup: prices pushed up by short covering can easily lose momentum once the covering is done. Unless new longs come in and OI picks up, this is just a short-term spike.