Open Interest (OI) Growth — Watch These Tokens — High Potential For Correction!

When analyzing more than 500 tokens, I’ve spotted massive OI growth in a few tokens.

Typically, this signals leveraged positions building up. That can mean only one thing: Risk (and likely an incoming drop — more explanation at the end of the post).

Let's have a look at the tokens first. Here are the top tokens with a massive OI spike:

1 — Ark (ARK) +391%

2 — Ontology Gas (ONG) +242%

3 — First Neiro on Ethereum (NEIRO) +172%

4 — Loom Netowrk (LOOM) +159

Let’s break it further down and include the latest price movements:

• ONG and ARK have already seen a drop after the OI surge. This might have been the blow-off top. However, we might see further correction since the rate is still high!

• LOOM had a more minor pullback. No big sell-off yet. Therefore, it is likely that another correction is incoming.

• NEIRO is still pumping hard. But OI this high can’t stay forever. Get prepared.

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What Is OI and Why It Can Be Dangerous?

Open Interest (OI) represents the total number of outstanding contracts in the futures market. When OI grows rapidly, leveraged positions build up fast, leading to higher volatility. If the price moves against these leveraged positions, liquidations are triggered, creating sharp sell-offs or buying frenzies.