There are roughly three types of divergence between open interest and price. This time, $KAIA saw rising open interest and a sideways price (24-hour open interest +13.86%, price +1.2%):
▶ Open interest up, price flat: Both long and short positions are growing, suggesting a buildup phase; volatility may increase afterward
· Open interest up, price down: New shorts may be entering aggressively, but if short positions become crowded, a short squeeze could follow
· Open interest down, price up: Often driven by short covering; whether the rally continues depends on new money coming in
Open interest is currently worth around $13.03 million. What will you be watching next?
#KAIA
This is for informational purposes only and does not constitute investment advice.
▶ Open interest up, price flat: Both long and short positions are growing, suggesting a buildup phase; volatility may increase afterward
· Open interest up, price down: New shorts may be entering aggressively, but if short positions become crowded, a short squeeze could follow
· Open interest down, price up: Often driven by short covering; whether the rally continues depends on new money coming in
Open interest is currently worth around $13.03 million. What will you be watching next?
#KAIA
This is for informational purposes only and does not constitute investment advice.