Technically, the contract data and price action for $JCT have diverged (open interest is falling while the price is rising): 24-hour open interest -13.13%, price +9.22%, current price 0.00635.
Watch for two things next:
First, whether open interest stops falling and starts to recover—a recovery could indicate new long positions are stepping in. Second, whether the price starts to stall. If open interest keeps falling and the price can no longer rise, it likely means short covering is nearing its end.
Watch for two things next:
First, whether open interest stops falling and starts to recover—a recovery could indicate new long positions are stepping in. Second, whether the price starts to stall. If open interest keeps falling and the price can no longer rise, it likely means short covering is nearing its end.
