$ON 24-hour contract open interest +19.08%, price -40.94%—open interest is rising while the price is falling.
First, a note on methodology: open interest here is calculated in coin units, excluding the effect of price movements on the value of open positions, so changes reflect actual opening or closing of positions.
As the price falls, new positions are being opened. This looks more like new short positions actively pushing the price down, though some longs may also be buying more as the price falls. In the short term, watch out for continued selling pressure from bears; but if short positions become too crowded, a short squeeze can happen quickly.
Cast your vote in the comments: up or down?
Make your own decisions when buying or selling—don’t just follow the crowd.
First, a note on methodology: open interest here is calculated in coin units, excluding the effect of price movements on the value of open positions, so changes reflect actual opening or closing of positions.
As the price falls, new positions are being opened. This looks more like new short positions actively pushing the price down, though some longs may also be buying more as the price falls. In the short term, watch out for continued selling pressure from bears; but if short positions become too crowded, a short squeeze can happen quickly.
Cast your vote in the comments: up or down?
Make your own decisions when buying or selling—don’t just follow the crowd.
