$Lobster: 24-hour futures open interest is up 18.71%, while the price is down 38.25%—open interest is rising as the price falls.
First, a note on methodology: open interest here is measured in coins, excluding the effect of price movements on its value. So the change reflects actual positions being opened or closed.
With the price falling and new positions increasing, new short positions are likely actively driving the decline, though some longs may also be adding to their positions as the price drops. For now, watch out for continued selling pressure from shorts. On the other hand, if short positions become too crowded, a rebound could come fast.
What do you think?
First, a note on methodology: open interest here is measured in coins, excluding the effect of price movements on its value. So the change reflects actual positions being opened or closed.
With the price falling and new positions increasing, new short positions are likely actively driving the decline, though some longs may also be adding to their positions as the price drops. For now, watch out for continued selling pressure from shorts. On the other hand, if short positions become too crowded, a rebound could come fast.
What do you think?