#ZORA This move is quite decisive.
In 15 minutes it dropped 1.14% straight away, and the trading volume surged to nearly 3x the usual level. But contract open interest actually shrank—many longs were washed out. In the span of 1 hour, the nominal positions were cut by over 80K. This is a typical deleveraging move: price is pushed down, but nobody is holding the order—everyone is running.
By the close, it has already broken below the lower bound of the range formed by the last ~20 five-minute K-bars. Active sell orders clearly have the upper hand: the buy/sell ratio is 0.69. The shorts have the stronger say right now. Over the next 24 hours there are still 64 million in volume. Liquidity isn’t bad, but the direction is very clear.
The 67.9% OI abnormal percentile isn’t the most extreme across the whole pool, but considering this volume-price structure, pulling it back hard in the short term won’t be easy. First, see whether it can hold its current level. If it can’t, the previous low will very likely be tested.
For longs, don’t rush to catch the falling knife; for shorts, don’t get too overexcited. Pace matters more than direction.
In 15 minutes it dropped 1.14% straight away, and the trading volume surged to nearly 3x the usual level. But contract open interest actually shrank—many longs were washed out. In the span of 1 hour, the nominal positions were cut by over 80K. This is a typical deleveraging move: price is pushed down, but nobody is holding the order—everyone is running.
By the close, it has already broken below the lower bound of the range formed by the last ~20 five-minute K-bars. Active sell orders clearly have the upper hand: the buy/sell ratio is 0.69. The shorts have the stronger say right now. Over the next 24 hours there are still 64 million in volume. Liquidity isn’t bad, but the direction is very clear.
The 67.9% OI abnormal percentile isn’t the most extreme across the whole pool, but considering this volume-price structure, pulling it back hard in the short term won’t be easy. First, see whether it can hold its current level. If it can’t, the previous low will very likely be tested.
For longs, don’t rush to catch the falling knife; for shorts, don’t get too overexcited. Pace matters more than direction.
