$AVAX 15m saw a small volume-backed breakout, with volume at 2.95x. The closing price moved above the top of the recent 20-bar 5m range.
Interestingly, OI is falling—down 0.39% on the 15m and 0.82% on the 1h. Price is rising while open interest is dropping, which looks more like a move driven by short covering than fresh longs entering.
The aggressive trade imbalance is 41.6%, with a buy/sell ratio of 2.42, so short-term buyers are definitely chasing. But keep an eye on the simultaneous drop in OI: a rally driven by short covering can easily fizzle if no fresh capital follows through.
First, see whether price can hold above the top of this range. Don’t rush to chase it.
Interestingly, OI is falling—down 0.39% on the 15m and 0.82% on the 1h. Price is rising while open interest is dropping, which looks more like a move driven by short covering than fresh longs entering.
The aggressive trade imbalance is 41.6%, with a buy/sell ratio of 2.42, so short-term buyers are definitely chasing. But keep an eye on the simultaneous drop in OI: a rally driven by short covering can easily fizzle if no fresh capital follows through.
First, see whether price can hold above the top of this range. Don’t rush to chase it.