$APT This drop has been pretty brutal. 15m volume surged to 31.57x, and the taker buy/sell ratio is 0.66, so selling pressure is clear. But look closely: OI is also falling, with 1h futures down 0.65%. This looks more like longs getting flushed out and stopped out than a major influx of new shorts.
Price has already broken below the lows of nearly 20 consecutive 5m candles, while the funding rate remains in a recent high percentile—the more crowded the longs were before, the faster the deleveraging is happening now. Be careful about chasing shorts in this setup; once positions have shrunk enough, a rebound could follow. Wait for OI to stabilize before reassessing direction.
Price has already broken below the lows of nearly 20 consecutive 5m candles, while the funding rate remains in a recent high percentile—the more crowded the longs were before, the faster the deleveraging is happening now. Be careful about chasing shorts in this setup; once positions have shrunk enough, a rebound could follow. Wait for OI to stabilize before reassessing direction.
