🗂️ Data at a glance: $MAGIC ｜1-hour open interest +12.44%｜Price +11.45%
· What it means: Open interest is not the same as capital flows. An increase in open interest only means that more positions are open in the contracts; it doesn't tell you where the money is coming from or whether positions are bullish or bearish.
· How to read it: The higher the open interest, the greater the impact contract positions can have on prices. A sudden sharp rise or fall could trigger a cascade of liquidations.
The same data can mean very different things in different market conditions, so don't apply a rule of thumb blindly.
#MAGIC
For reference only. Make your own decisions.
· What it means: Open interest is not the same as capital flows. An increase in open interest only means that more positions are open in the contracts; it doesn't tell you where the money is coming from or whether positions are bullish or bearish.
· How to read it: The higher the open interest, the greater the impact contract positions can have on prices. A sudden sharp rise or fall could trigger a cascade of liquidations.
The same data can mean very different things in different market conditions, so don't apply a rule of thumb blindly.
#MAGIC
For reference only. Make your own decisions.