A quick update for friends: I was looking at the futures data today, and there’s an interesting detail about $KAVA : open interest is up 94.01% over the past 24 hours, while the price is down 61.49%.
When open interest rises as the price falls, it’s likely that shorts are entering. But I’ve also seen plenty of cases where too many shorts pile in and then get wiped out by a sharp rally. So in situations like this, I neither chase the shorts nor rush to buy the dip.
If you see it differently, feel free to share your take in the comments.
When open interest rises as the price falls, it’s likely that shorts are entering. But I’ve also seen plenty of cases where too many shorts pile in and then get wiped out by a sharp rally. So in situations like this, I neither chase the shorts nor rush to buy the dip.
If you see it differently, feel free to share your take in the comments.