How to confirm the next movement of Wld?
1️⃣ If the OI stabilizes and the volume decreases → The liquidations have ended and the price could consolidate.
2️⃣ If the OI decreases and the volume increases → The liquidations continue and we might see more drops.
3️⃣ If the OI and volume increase together → New traders are entering, which can mean a bounce or a new trend.
1️⃣ The OI had a large spike recently (over 200M in open contracts). This indicates that there was significant interest in trading WLD with leverage.
2️⃣ After the spike, the OI has decreased. This suggests that some traders are closing positions or that there were liquidations.
3️⃣ In the past, when the OI reached similar levels, there was a strong drop afterward. This may indicate that if selling pressure continues, we could see more liquidations in case of a price drop.
Will the liquidations continue?
Possibly, but to a lesser extent. There has already been a strong drop in the OI, indicating that many leveraged positions were closed. However, if the price keeps falling, more liquidations could still occur.
