Divergences between open interest and price generally fall into three categories. This time, $RLC saw open interest decline while price rose (24-hour open interest: -35.16%; price: +14.24%):
· Rising open interest, flat price: Long and short positions are both growing as the market builds momentum; volatility may increase later.
· Rising open interest, falling price: New shorts may be pressing their advantage, though an overly crowded short position could also trigger a rebound.
▶ Falling open interest, rising price: Often driven by short covering; whether the move continues depends on whether new capital steps in.
Open interest is currently around $13.74 million. Do you think the market will rise from here, or are you leaning bearish?
#RLC
Just sharing a quick note—make your own trading decisions.
· Rising open interest, flat price: Long and short positions are both growing as the market builds momentum; volatility may increase later.
· Rising open interest, falling price: New shorts may be pressing their advantage, though an overly crowded short position could also trigger a rebound.
▶ Falling open interest, rising price: Often driven by short covering; whether the move continues depends on whether new capital steps in.
Open interest is currently around $13.74 million. Do you think the market will rise from here, or are you leaning bearish?
#RLC
Just sharing a quick note—make your own trading decisions.