To be honest, this isn’t a handout—it’s like picking up money waving at me. $ONG pulled up so abruptly that it actually makes my back go cold. Open interest isn’t increasing but decreasing instead. This is a classic short-squeeze liquidation followed by a dead-cat bounce. I’ve seen this structure way too many times: after the longs get liquidated, the price gets pushed back down the same way—sometimes even deeper.
Some people say this kind of volume-backed rally indicates a trend reversal, but I don’t agree. Yes, volume has come out, but open interest hasn’t kept up. That means it isn’t fresh capital entering the market; it’s shorts being forced to cover in an ongoing battle of existing positions, which pushes the price up.
This kind of rise has no foundation—like building a tower on sand. It looks lively, but once the wind blows, it collapses. What we fear most in trading is getting tricked into it by this fake prosperity and becoming the bag-holders when retail traders who chased the longs finally enter. Then the main players can use the liquidity to distribute. Think about it another way: if it were truly a trend reversal, open interest should expand in sync, with both long and short sides adding exposure—only then would there be momentum for sustained upside. But with this divergence between volume and price, I’m more inclined to believe the operator is pumping the price to distribute, creating room for the next leg down.
The risk-reward is laid out in front of everyone: upside potential is limited, while downside is opened up with imagination.
In terms of the chart structure, in the short term the moving averages are still in a bearish alignment. This sharp spike didn’t even reach the previous high before rolling over, which suggests heavy selling pressure overhead. My judgment is straightforward: this rebound is ammunition being delivered to the bears. After they catch their breath, we’ll have to keep moving down. Don’t get fooled by this bullish candle. When you watch the market, look at the essence—open interest is the best “truth-revealing mirror.”
Gaze at the vastness from Mt. Ocean’s shore, observe the market’s subtle shifts.
Travel with Uncle Xiong, witness the sky’s盈亏.
#ONG
Click below to trade 👇
Some people say this kind of volume-backed rally indicates a trend reversal, but I don’t agree. Yes, volume has come out, but open interest hasn’t kept up. That means it isn’t fresh capital entering the market; it’s shorts being forced to cover in an ongoing battle of existing positions, which pushes the price up.
This kind of rise has no foundation—like building a tower on sand. It looks lively, but once the wind blows, it collapses. What we fear most in trading is getting tricked into it by this fake prosperity and becoming the bag-holders when retail traders who chased the longs finally enter. Then the main players can use the liquidity to distribute. Think about it another way: if it were truly a trend reversal, open interest should expand in sync, with both long and short sides adding exposure—only then would there be momentum for sustained upside. But with this divergence between volume and price, I’m more inclined to believe the operator is pumping the price to distribute, creating room for the next leg down.
The risk-reward is laid out in front of everyone: upside potential is limited, while downside is opened up with imagination.
In terms of the chart structure, in the short term the moving averages are still in a bearish alignment. This sharp spike didn’t even reach the previous high before rolling over, which suggests heavy selling pressure overhead. My judgment is straightforward: this rebound is ammunition being delivered to the bears. After they catch their breath, we’ll have to keep moving down. Don’t get fooled by this bullish candle. When you watch the market, look at the essence—open interest is the best “truth-revealing mirror.”
Gaze at the vastness from Mt. Ocean’s shore, observe the market’s subtle shifts.
Travel with Uncle Xiong, witness the sky’s盈亏.
#ONG
Click below to trade 👇