$SOMI This drop doesn’t look like a typical pullback. The 1.96% decline doesn’t seem huge, but the de-leveraging on the contracts side is quite real. OI fell by nearly 6% over an hour, and in 15 minutes it shrank by 2.79%—this scale isn’t something retail traders grind out.
In the order book, active trade imbalance is -25%, and the buy/sell ratio has dropped to 0.60. The shorts are actively driving price down, while the longs are basically lying flat with no energy to absorb. Most importantly, it comes down to leverage structure: the OI is at a historical extreme percentile, with an abnormality rating of 97.8% across the whole pool #2. Data like this generally isn’t just “noise.”
What matters now is whether there will be further cascade liquidations. The longs have been pushed too tightly over this period, so there may be aftershocks. Don’t rush to catch a falling knife.
In the order book, active trade imbalance is -25%, and the buy/sell ratio has dropped to 0.60. The shorts are actively driving price down, while the longs are basically lying flat with no energy to absorb. Most importantly, it comes down to leverage structure: the OI is at a historical extreme percentile, with an abnormality rating of 97.8% across the whole pool #2. Data like this generally isn’t just “noise.”
What matters now is whether there will be further cascade liquidations. The longs have been pushed too tightly over this period, so there may be aftershocks. Don’t rush to catch a falling knife.