Recently, the trend of $AIO has continued to drift downward, yet the open interest has been unusually and sharply increasing against the trend. This divergence signal of "price falling while positions increase" often indicates that the bears are stepping up their positioning. Once a liquidation cascade triggered by high leverage occurs, it can easily lead to widespread, concentrated liquidations, further intensifying downward pressure.

From the data, the market capitalization is rapidly inflating while liquidity is also tight; the sell pressure in the short term cannot be ignored. In the near term, it is advisable to remain cautious about chasing longs and to watch out for waterfall risks caused by a break in the leverage bubble.

#AIO#Market Analysis#Leverage Risk