The percentage change in open interest is a good metric for gauging investor sentiment and trading behavior.
For TON, the recent negative shift suggests that traders are primarily closing or reducing their positions, resulting in a decline in open interest.
This indicates a period of reduced market activity wich could lead to a consolidation or an even deeper correction.
Typically, periods of significant increases in open interest reflect heightened trading activity wich can lead to profit-taking as prices follow the OI growth.
On the other hand, periods of declining open interest often suggest that market participants are exiting positions, which could create an opportunity to establish new positions before the next market move.
Historically, larger positive shifts in the percentage change in open interest have been associated with stronger price momentum, while a sharp drop in OI often precedes a potential price reversal as the market resets.
Written by Darkfost
