$ICP this spot is a bit interesting.
Price has pushed up by 2%, but open interest has actually been dropping — a classic short-covering move, not one driven by new long entries. The OI abnormal percentile has already reached 98.2%, ranked #6 in the whole pool. Being able to extend the breakout in this kind of extreme state suggests shorts are being squeezed quite hard.
On the 15-minute chart, it broke above the upper range of nearly 20 candles, with volume expanding to 1.91x and aggressive buying in control (buy/sell ratio 1.23). These signals are pretty clean. Still, to be honest, the absolute size of this rally isn’t especially impressive on its own; the main question is whether it can keep going.
If the next few cycles can keep OI steady without a sharp further decline, this move may still have legs. But if OI rebounds quickly while price starts stalling, then be careful — it may be another directional reset to shake people out. Stay put and watch for now.
Price has pushed up by 2%, but open interest has actually been dropping — a classic short-covering move, not one driven by new long entries. The OI abnormal percentile has already reached 98.2%, ranked #6 in the whole pool. Being able to extend the breakout in this kind of extreme state suggests shorts are being squeezed quite hard.
On the 15-minute chart, it broke above the upper range of nearly 20 candles, with volume expanding to 1.91x and aggressive buying in control (buy/sell ratio 1.23). These signals are pretty clean. Still, to be honest, the absolute size of this rally isn’t especially impressive on its own; the main question is whether it can keep going.
If the next few cycles can keep OI steady without a sharp further decline, this move may still have legs. But if OI rebounds quickly while price starts stalling, then be careful — it may be another directional reset to shake people out. Stay put and watch for now.