$AVA ｜1-hour open interest +141.83%｜Price +1.71%
Before discussing capital flows, let's first understand open interest.
An increase in open interest means new positions have been opened; a decrease means positions have been closed, either voluntarily or through liquidation.
Rising prices alongside increasing open interest are often interpreted as longs actively entering the market, while falling prices alongside increasing open interest are often interpreted as new shorts actively entering.
All data merely summarizes market movements that have already occurred. The market can certainly move in the opposite direction.
Before discussing capital flows, let's first understand open interest.
An increase in open interest means new positions have been opened; a decrease means positions have been closed, either voluntarily or through liquidation.
Rising prices alongside increasing open interest are often interpreted as longs actively entering the market, while falling prices alongside increasing open interest are often interpreted as new shorts actively entering.
All data merely summarizes market movements that have already occurred. The market can certainly move in the opposite direction.