$INJ 8.042, up 11.29% in one day.
This rally was not caused by shorts covering at all.
What should a squeeze look like? Open interest goes down while price surges up. This time, both were the opposite.
Over eight hours, open interest increased from 3,870,397 contracts to 4,502,005 contracts, an increase of 631,608 contracts.
Notional open interest rose 28.3% over the same period, while the contract count rose only 16.3%. The 12 percentage-point gap in between was entirely driven by the price itself being pushed up. The money itself did not really flow in by that much; what rose was valuation, not position size.
The funding rate side makes it even clearer. Starting from 11-12 00:00, it stayed negative for six consecutive intervals, and shorts paid for a full 48 hours.
The 11-14 00:00 interval flipped positive to 0.0001%, and the ones paying became longs.
At 11-13 20:00, that four-hour candle saw volume 3.61 times the median of 41 candles.
If 8.384 holds, look higher at 8.444. If it breaks below 7.713, this support gives way and the lower target is 7.144. Watch the close at 7.713.
$SOL fell 4% today, $INJ rose 11%. Which side are you on in this divergence?
Source: https://fapi.binance.com/fapi/v1/klines?symbol=INJUSDT\u0026interval=4h
This rally was not caused by shorts covering at all.
What should a squeeze look like? Open interest goes down while price surges up. This time, both were the opposite.
Over eight hours, open interest increased from 3,870,397 contracts to 4,502,005 contracts, an increase of 631,608 contracts.
Notional open interest rose 28.3% over the same period, while the contract count rose only 16.3%. The 12 percentage-point gap in between was entirely driven by the price itself being pushed up. The money itself did not really flow in by that much; what rose was valuation, not position size.
The funding rate side makes it even clearer. Starting from 11-12 00:00, it stayed negative for six consecutive intervals, and shorts paid for a full 48 hours.
The 11-14 00:00 interval flipped positive to 0.0001%, and the ones paying became longs.
At 11-13 20:00, that four-hour candle saw volume 3.61 times the median of 41 candles.
If 8.384 holds, look higher at 8.444. If it breaks below 7.713, this support gives way and the lower target is 7.144. Watch the close at 7.713.
$SOL fell 4% today, $INJ rose 11%. Which side are you on in this divergence?
Source: https://fapi.binance.com/fapi/v1/klines?symbol=INJUSDT\u0026interval=4h
