Looking only at candlestick charts can make you miss a lot of information. $ON : 1-hour open interest +15.66%, price +6.07%. Taken together:
Rising open interest and rising price: new longs are entering.
If open interest keeps increasing, watch whether the funding rate rises along with it. Which side do you think will get flushed out first next—the longs or the shorts?
This is only my personal opinion and should not be taken as investment advice.
Rising open interest and rising price: new longs are entering.
If open interest keeps increasing, watch whether the funding rate rises along with it. Which side do you think will get flushed out first next—the longs or the shorts?
This is only my personal opinion and should not be taken as investment advice.