This move has something to it: after $USELESS 24 hours, it has pulled out +61.31%, and the most recent complete hour added another +8.02%. But what really pulled my attention away from the candlestick chart is the slower set of data behind it: the 24-hour open interest is up 7.88%, and the hourly trading volume is 2.82 times the recent median.
The price is walking steadily near the highs, but open interest is increasing in sync too—this suggests someone is rushing in with positions, which is a bit different from a purely emotional spike. I’m not in a hurry to chase. Instead, I want to see whether the price can hold: if, on the first pullback, the trading doesn’t get too wild but open interest doesn’t drop noticeably, then that’s the flavor of a second leg. Conversely, if the price keeps making new highs while open interest starts to turn downward and shrink, I’m more inclined to think this run is older positions using the momentum to find an exit—so there’s no need to jump in and catch the baton.
Strong participation first makes me remind myself that liquidity is sufficient, but “active” doesn’t equal direction. Direction depends on whether, after the first time it meets resistance, there are still people willing to pay to buy back the pullback. After the disagreements play out, then we act—I won’t make the market’s most frantic surge my cue to enter.
The price is walking steadily near the highs, but open interest is increasing in sync too—this suggests someone is rushing in with positions, which is a bit different from a purely emotional spike. I’m not in a hurry to chase. Instead, I want to see whether the price can hold: if, on the first pullback, the trading doesn’t get too wild but open interest doesn’t drop noticeably, then that’s the flavor of a second leg. Conversely, if the price keeps making new highs while open interest starts to turn downward and shrink, I’m more inclined to think this run is older positions using the momentum to find an exit—so there’s no need to jump in and catch the baton.
Strong participation first makes me remind myself that liquidity is sufficient, but “active” doesn’t equal direction. Direction depends on whether, after the first time it meets resistance, there are still people willing to pay to buy back the pullback. After the disagreements play out, then we act—I won’t make the market’s most frantic surge my cue to enter.