$JCT: volume has surged—breakout or correction?
Trading activity in $JCT has risen sharply, and there are some data points worth looking at:
Open interest: ~$41.9 million, up 194% in 24 hours (lots of new positions have been opened)
Positive funding rate: longs are paying shorts
Positioning: 58% short, 42% long
If $JCT keeps rising, shorts could be forced to close their positions and push the price even higher (short squeeze). But after such a strong rally, a quick correction is also possible. With so much new open interest, the move could be sharp in either direction.
What do you expect: another breakout or a sharp drop?
$JCT
Trading activity in $JCT has risen sharply, and there are some data points worth looking at:
Open interest: ~$41.9 million, up 194% in 24 hours (lots of new positions have been opened)
Positive funding rate: longs are paying shorts
Positioning: 58% short, 42% long
If $JCT keeps rising, shorts could be forced to close their positions and push the price even higher (short squeeze). But after such a strong rally, a quick correction is also possible. With so much new open interest, the move could be sharp in either direction.
What do you expect: another breakout or a sharp drop?
$JCT
