$SQD This downward move has a bit of something.
I just checked the data—within 15 minutes it dropped 3.55%, and the trading volume spiked to 2.3 times the usual. More importantly, open interest is also falling along with the price. This combination of “price down + OI down” looks more like a bunch of long positions are actively cutting losses and exiting, rather than new short sellers coming in to hammer the market.
The close has already broken through the lower bound of the range from the most recent 20 five-minute candlesticks—basically piercing the short-term structure. Nominal open interest shrank by 5.56% within 15 minutes. That pace isn’t exactly gentle; someone is being forced to deleverage.
However, the active trading mismatch is only -1.7%, and the buy-sell ratio is 0.97, which suggests there isn’t a one-sided panic selloff. It feels more like a targeted liquidation wave that washes out the weaker players.
In the past 24 hours there’s still $54 million in trading volume—this pool hasn’t died. It looks like a short-term deleveraging move by longs. Whether it can stabilize afterward depends on whether the trading volume can start to come down.
#SQD
I just checked the data—within 15 minutes it dropped 3.55%, and the trading volume spiked to 2.3 times the usual. More importantly, open interest is also falling along with the price. This combination of “price down + OI down” looks more like a bunch of long positions are actively cutting losses and exiting, rather than new short sellers coming in to hammer the market.
The close has already broken through the lower bound of the range from the most recent 20 five-minute candlesticks—basically piercing the short-term structure. Nominal open interest shrank by 5.56% within 15 minutes. That pace isn’t exactly gentle; someone is being forced to deleverage.
However, the active trading mismatch is only -1.7%, and the buy-sell ratio is 0.97, which suggests there isn’t a one-sided panic selloff. It feels more like a targeted liquidation wave that washes out the weaker players.
In the past 24 hours there’s still $54 million in trading volume—this pool hasn’t died. It looks like a short-term deleveraging move by longs. Whether it can stabilize afterward depends on whether the trading volume can start to come down.
#SQD