$CAP 15-minute chart directly put on a diving show for you, -2.42% without hesitation, trading volume shot up to 13x, volatility Z jumped to 5.69, and this kind of move is an extreme outlier even in the entire pool.
Interestingly, this drop was pretty "clean". OI was shrinking, notional positions were down by over 200K, and the funding rate was still hanging at a high level — a classic deleveraging script, with long stop-losses being flushed out, not fresh short-selling pressure driving the dump. By the close, the price had directly broken below the lower bound of the 20 five-minute candle range, with aggressive selling dominating; the buy-sell ratio was 0.80, and sell orders were rubbing against the buy side.
Simply put, long positions are being washed out. Next, it will either finish the flush, contract in volume, and stabilize, or continue cascading and accelerate lower. In this kind of decline, I don't think chasing shorts offers great risk-reward, but don't rush to buy the dip either. Let the bullets fly for a bit first, and see where the funding rate gets flushed to before deciding. $CAP
Interestingly, this drop was pretty "clean". OI was shrinking, notional positions were down by over 200K, and the funding rate was still hanging at a high level — a classic deleveraging script, with long stop-losses being flushed out, not fresh short-selling pressure driving the dump. By the close, the price had directly broken below the lower bound of the 20 five-minute candle range, with aggressive selling dominating; the buy-sell ratio was 0.80, and sell orders were rubbing against the buy side.
Simply put, long positions are being washed out. Next, it will either finish the flush, contract in volume, and stabilize, or continue cascading and accelerate lower. In this kind of decline, I don't think chasing shorts offers great risk-reward, but don't rush to buy the dip either. Let the bullets fly for a bit first, and see where the funding rate gets flushed to before deciding. $CAP