$LYN This 15m candle plunged 7%, with volume reaching 2.6x normal, and closed below the lows of nearly 20 recent 5m candles—the breakdown is confirmed, not a head fake.
But the interesting part is open interest: 15m OI fell just 0.57%, while 1h notional open interest actually shrank 8%. Price down + OI down means longs are deleveraging and stopping out, not that new shorts are piling in to drive the sell-off. The taker volume delta is still 4.5%, and the buy/sell ratio is 1.09, which suggests there are still buyers stepping in below.
With this kind of setup, I usually don’t chase shorts. Once the leverage has been flushed out, a bounce becomes more likely. But the breakdown is real—the range low is gone, so we have to accept that. First, let’s see if price can reclaim that level. $LYN
But the interesting part is open interest: 15m OI fell just 0.57%, while 1h notional open interest actually shrank 8%. Price down + OI down means longs are deleveraging and stopping out, not that new shorts are piling in to drive the sell-off. The taker volume delta is still 4.5%, and the buy/sell ratio is 1.09, which suggests there are still buyers stepping in below.
With this kind of setup, I usually don’t chase shorts. Once the leverage has been flushed out, a bounce becomes more likely. But the breakdown is real—the range low is gone, so we have to accept that. First, let’s see if price can reclaim that level. $LYN