How to know when MM will push a token to the peak.
The answer is to closely monitor OI (open interest) fluctuations.
Pushing the price of a token always involves pushing both the spot and future markets simultaneously.
For the spot market, MM uses continuous buy and sell orders at market prices and limits at increasingly higher price levels, causing the token price to rise steadily.
In the futures market, MM uses large long orders to make the price follow the spot price. The use of large long orders by MM indicates that the OI (open interest) data will be very high.
I have been monitoring and discovered that, on coinglass in the Open interest change heatmap (%), the index for 5 minutes shows large % OI (over 10%) for a certain token. After a few minutes, that % appears again and is large, and you should see if the price has risen several % or even above 10~20%, then monitor closely.
The % OI in the following minutes continues to rise and increases, and with positive funding, as the price keeps rising, that token will push to the peak.
So when should you exit your position? That is when the price is close to its peak and the % OI is extremely high (40-60%) on coinglass. Coinglass provides real-time statistics. You should take profits immediately; following a significant OI increase when the price is near the peak will lead to a strong and continuous drop.
Or when OI does not increase as sharply as above but the OI growth momentum is decreasing or not increasing, or OI starts to decline, that is when you should take profits.
You should remember that when % OI increases too sharply continuously from 40-50%, a strong drop is imminent. Keep that in mind.
#future #OI