📐 Data: $ICNT | 1-hour open interest +8.03% | price +2.46%
· Meaning: Open interest is usually tracked separately for each contract. Here, it refers to open interest in Binance USDT-margined perpetual contracts, not the total across the entire market.
· Common interpretation: Rising prices with falling open interest are generally understood to indicate short covering, while falling prices with falling open interest are generally understood to indicate longs closing their positions at a loss. These are interpretations, not conclusions.
Cross-checking multiple data points is more reliable than looking at just one, but even more signals still can’t provide a definitive conclusion.
· Meaning: Open interest is usually tracked separately for each contract. Here, it refers to open interest in Binance USDT-margined perpetual contracts, not the total across the entire market.
· Common interpretation: Rising prices with falling open interest are generally understood to indicate short covering, while falling prices with falling open interest are generally understood to indicate longs closing their positions at a loss. These are interpretations, not conclusions.
Cross-checking multiple data points is more reliable than looking at just one, but even more signals still can’t provide a definitive conclusion.