$SWARMS , this 15m move is pretty brutal: down 3%, with volume up to 1.6x—not the kind of slow bleed on no volume. The active trade imbalance is -26%, the buy/sell ratio is 0.58, and selling pressure is dominant. Price has also broken below the lower bound of the last 20 or so 5m candles.
But what really caught my attention wasn’t the price—it was OI. It’s down 1.31% on the 15m and 1.83% on the 1h, with the abnormality percentile at 97.6%, ranking 7th across the entire pool. I’m more inclined to think this is longs getting deleveraged—through stop-losses or voluntary position reductions—rather than a major influx of new shorts.
$SWARMS ’s funding rate is also in a high percentile lately. Longs had gotten a bit crowded, so seeing some of them get flushed out now is pretty normal. The issue is that 24h volume is only 19M; with this kind of price action, liquidity may not be deep enough to withstand people chasing shorts.
Personally, I wouldn’t chase shorts at this level. I’d first see whether things can stabilize once this round of deleveraging is over. Smaller positions and a sentiment reset could actually be part of the process of finding balance again.
But what really caught my attention wasn’t the price—it was OI. It’s down 1.31% on the 15m and 1.83% on the 1h, with the abnormality percentile at 97.6%, ranking 7th across the entire pool. I’m more inclined to think this is longs getting deleveraged—through stop-losses or voluntary position reductions—rather than a major influx of new shorts.
$SWARMS ’s funding rate is also in a high percentile lately. Longs had gotten a bit crowded, so seeing some of them get flushed out now is pretty normal. The issue is that 24h volume is only 19M; with this kind of price action, liquidity may not be deep enough to withstand people chasing shorts.
Personally, I wouldn’t chase shorts at this level. I’d first see whether things can stabilize once this round of deleveraging is over. Smaller positions and a sentiment reset could actually be part of the process of finding balance again.
