$PYTH This 15m drop was a bit too sharp: down 2.73% on more than 5x the volume, with the Z-score also nearing 3—clearly not ordinary noise.
But the OI is more worth examining: down 1.32% over 15m and 2.23% over 1h. Price falling while open interest drops is a classic deleveraging/stop-loss move, not what it looks like when a flood of new shorts enters. The taker flow delta is -12.2%, and the buy/sell ratio is 0.78, so the selling pressure is real. The close also slipped below the lows of nearly 20 5m candles.
The OI anomaly percentile is 93.3%, ranking fifth across the entire pool. If this is just longs getting liquidated, a rebound may actually become more likely once the liquidations are over. The concern is that no one steps in after the liquidations, and the price keeps grinding lower. First, watch whether it can quickly reclaim the lower edge of this range. If it can’t, don’t rush to call a bottom.
But the OI is more worth examining: down 1.32% over 15m and 2.23% over 1h. Price falling while open interest drops is a classic deleveraging/stop-loss move, not what it looks like when a flood of new shorts enters. The taker flow delta is -12.2%, and the buy/sell ratio is 0.78, so the selling pressure is real. The close also slipped below the lows of nearly 20 5m candles.
The OI anomaly percentile is 93.3%, ranking fifth across the entire pool. If this is just longs getting liquidated, a rebound may actually become more likely once the liquidations are over. The concern is that no one steps in after the liquidations, and the price keeps grinding lower. First, watch whether it can quickly reclaim the lower edge of this range. If it can’t, don’t rush to call a bottom.