$DOOD 1 1-hour contract open interest increased by 5.26%; price rose 6.69% over the same period.
Guys, what does open interest actually tell us? Here’s the quick version 👇
Open interest value equals the number of contracts held × the price, so its value rises when the price goes up. Comparing the number of coins gives a better indication of whether new positions have actually been opened.
If open interest rises without spot buying keeping pace, the rally may be driven more by leverage—and moves like that can rise fast and fall just as quickly.
The same reading can mean very different things in different market conditions, so don’t apply a single rule blindly.
#DOOD
Risk management comes first in volatile markets.
Guys, what does open interest actually tell us? Here’s the quick version 👇
Open interest value equals the number of contracts held × the price, so its value rises when the price goes up. Comparing the number of coins gives a better indication of whether new positions have actually been opened.
If open interest rises without spot buying keeping pace, the rally may be driven more by leverage—and moves like that can rise fast and fall just as quickly.
The same reading can mean very different things in different market conditions, so don’t apply a single rule blindly.
#DOOD
Risk management comes first in volatile markets.