$S Open interest rose 23.8% in one hour, while the price climbed 15.73%—both moving sharply higher.
When price and open interest rise together, the standard interpretation is that new long positions are entering. If shorts were capitulating and covering, open interest should be falling instead. Of course, this is just the usual interpretation; you need to consider trading volume and funding rates too.
The price is already up 65.4% in seven days. At this point, if it climbs further, I’ll be watching what happens on the pullback: if open interest falls along with the price, someone is taking profits; if it keeps rising, more people are piling in.
When price and open interest rise together, the standard interpretation is that new long positions are entering. If shorts were capitulating and covering, open interest should be falling instead. Of course, this is just the usual interpretation; you need to consider trading volume and funding rates too.
The price is already up 65.4% in seven days. At this point, if it climbs further, I’ll be watching what happens on the pullback: if open interest falls along with the price, someone is taking profits; if it keeps rising, more people are piling in.