$LIT 24-hour contract open interest fell 13.65%, while the price rose 4.39%—open interest down, price up.
First, a note on the metric: open interest here is measured in coin units, excluding the impact of price fluctuations on its value, so changes reflect actual positions being opened or closed.
With the price rising while open interest is falling, the rally is likely driven mainly by shorts closing their positions, rather than by new long positions. How far this kind of short squeeze can go depends on whether fresh capital steps in.
What will you do if the trend reverses from here?
#LIT
First, a note on the metric: open interest here is measured in coin units, excluding the impact of price fluctuations on its value, so changes reflect actual positions being opened or closed.
With the price rising while open interest is falling, the rally is likely driven mainly by shorts closing their positions, rather than by new long positions. How far this kind of short squeeze can go depends on whether fresh capital steps in.
What will you do if the trend reverses from here?
#LIT