Open interest and price divergence generally fall into three types. For $KAVA this time, open interest is rising while the price is falling (24-hour open interest +94.01%, price -61.49%):
Open interest up, price flat: both long and short positions are growing, suggesting a buildup; volatility may increase later
Open interest up, price down: new shorts may be moving in; if short positions are crowded, a short squeeze could also follow
Open interest down, price up: the rise is likely driven by short covering; its staying power depends on whether new money follows through
The current open interest value is about $6.63 million. How do you interpret this information?
#KAVA
Just my personal take—take it for what it's worth. This isn't advice.
Open interest up, price flat: both long and short positions are growing, suggesting a buildup; volatility may increase later
Open interest up, price down: new shorts may be moving in; if short positions are crowded, a short squeeze could also follow
Open interest down, price up: the rise is likely driven by short covering; its staying power depends on whether new money follows through
The current open interest value is about $6.63 million. How do you interpret this information?
#KAVA
Just my personal take—take it for what it's worth. This isn't advice.
