This 15-minute candle for $MUBARAK is quite interesting.
Price rose 2.22%, volume was 2.5 times normal, and it broke above the upper edge of the range from the last 20 five-minute candles. But contract open interest actually fell — on the 15-minute level, OI shrank by -0.08%, although notional value still increased by 242K U.
This pattern looks more like a short squeeze driven by covering than a volume breakout from new longs entering. Buy orders are indeed dominant, with aggressive sell/buy imbalance nearly 11% and a bid ratio of 1.24, but the funding rate is already at a relatively high recent percentile, so chasing longs is not cheap.
Honestly, I’ve seen this kind of impulse rally with price-volume divergence many times. Anyway, don’t rush to change your whole outlook based on one bullish candle — let’s see whether it can hold above this upper range first. $MUBARAK
Price rose 2.22%, volume was 2.5 times normal, and it broke above the upper edge of the range from the last 20 five-minute candles. But contract open interest actually fell — on the 15-minute level, OI shrank by -0.08%, although notional value still increased by 242K U.
This pattern looks more like a short squeeze driven by covering than a volume breakout from new longs entering. Buy orders are indeed dominant, with aggressive sell/buy imbalance nearly 11% and a bid ratio of 1.24, but the funding rate is already at a relatively high recent percentile, so chasing longs is not cheap.
Honestly, I’ve seen this kind of impulse rally with price-volume divergence many times. Anyway, don’t rush to change your whole outlook based on one bullish candle — let’s see whether it can hold above this upper range first. $MUBARAK
