๐ Two coins went up today. One had new money behind it and the other didnโt. How can you tell? By looking at open interest.
๐ The concept: open interest (OI) is the number of futures contracts that are still open. If it rises, new positions are being opened; if it falls, positions are being closed.
๐ Example using todayโs data (Binance):
โข
$ENA : price +6.8% and OI +12.3% โ new money is coming in alongside the rise.
โข
$QNT : price +20.5% and OI โ7.5% โ the rise coincides with positions being closed (shorts covering or people taking profits).
โข
$WLD : price โ1.7%, OI +5.9% and negative funding (โ0.014%) โ positions are being opened as the price falls, with shorts paying.
๐ Quick guide:
โข Price โ + OI โ โ a trend with fresh fuel.
โข Price โ + OI โ โ a rise driven by positions closing; it may lose momentum once they run out.
โข Price โ + OI โ โ bets are building up, often short positions.
โ Common mistake: thinking high OI = bullish. OI doesnโt indicate direction, only how many people are betting. You need to look at it alongside price and funding.
โ
In a nutshell: price tells you what happened; open interest tells you whether thereโs new money behind it.
Did you already check open interest before trading? Reply โYESโ or โNOโ ๐
#Futuros #InteresAbierto #AprendeCripto #Trading #Tra100d โ ๏ธ For informational and educational purposes only; this is not financial advice. Cryptocurrencies are volatile: do your own research and trade with caution.