There are generally three types of divergence between open interest and price. This time, $CKB has rising open interest and falling price (24-hour open interest: +18.89%; price: -5.3%):
· Open interest up, price flat: Long and short positions are both growing, suggesting a buildup; volatility may increase later.
▶ Open interest up, price down: New shorts may be entering aggressively, but if short positions get crowded, a rebound could catch them off guard.
· Open interest down, price up: The rise is likely driven by short covering; its staying power depends on whether new money follows through.
Open interest is currently around $5.42 million. Cast your vote in the comments: up or down?
· Open interest up, price flat: Long and short positions are both growing, suggesting a buildup; volatility may increase later.
▶ Open interest up, price down: New shorts may be entering aggressively, but if short positions get crowded, a rebound could catch them off guard.
· Open interest down, price up: The rise is likely driven by short covering; its staying power depends on whether new money follows through.
Open interest is currently around $5.42 million. Cast your vote in the comments: up or down?