$AAVE This drop has been pretty sharp: it plunged 2.5% in 15m, volume surged to 6x, the buy/sell ratio was 0.73, and aggressive selling clearly dominated.
Interestingly, OI rose instead of falling: +1.77% in 15m and +4.37% in 1h. Price down + open interest up looks more like new shorts entering with leverage than a long-position cascade.
It just broke below the lower bound of the recent 20-candle 5m range, so short-term sentiment is bearish. In this setup, I’m not keen to catch a falling knife; I’ll first see whether these new shorts are driving a short-term sell-off or marking the start of a trend.
Interestingly, OI rose instead of falling: +1.77% in 15m and +4.37% in 1h. Price down + open interest up looks more like new shorts entering with leverage than a long-position cascade.
It just broke below the lower bound of the recent 20-candle 5m range, so short-term sentiment is bearish. In this setup, I’m not keen to catch a falling knife; I’ll first see whether these new shorts are driving a short-term sell-off or marking the start of a trend.