🧵 Want to get ahead of the next wave of altcoin trends? Here are two powerful data points: OI Imbalance + Funding Rate, tracking how smart traders identify altcoin trading opportunities 👇
Most altcoin price surges are not without warning, but rather stem from subtle changes in market sentiment and positioning, carefully orchestrated by roles like 👩🏾💻🐳. However, as long as you know how to read the right data, you can get in position before the price surge occurs.
Two indicators from blave.org you should closely monitor:
📊 OI Imbalance: This indicates the ratio of open interest to market capitalization in the futures market, revealing where leverage is concentrated. The higher the OI Imbalance, the more potential for volatility. (Large)
💸 Funding Rate: This is an excellent way to observe market sentiment. Traders can use the funding rate for arbitrage or to capture opportunities from abnormal rates.
These two data points can help you gain insights into leverage stacking and the positioning direction of market traders.
For instance, the currency with the number #BID shown in the image is one where the OI Imbalance index is rising, and the Alpha value has reached 0.78. If it breaks above 1, there may be strong volatility or trend reversal opportunities.
You can add #BID to your watchlist and then check the details on the data dashboard: The concentration of bullish chips in BID has recently risen strongly, and whales are inclined to go long in the current price range; at the same time, bearish momentum is weakening, which may provide support for an upward move.
💡 Therefore, the futures market for @Creator.Bid is becoming a new target of interest for bullish traders, but if the OI Imbalance continues to rise to very high areas, volatility and risk will also increase accordingly.
On the other hand, the funding rate table shows that $RPL , $HUMA , $JST , and $IOTX are currently the top four altcoins with negative funding rates.
These coins may become potential targets for bullish positioning, as the high cost of holding short positions is difficult to sustain. Once risk and reward become asymmetric, short positions may be forced to close.
I selected RPL and BID for a data comparison and found that both are currently showing bullish signals, but BID's buying momentum is stronger, thus it has a slight advantage.
Have you learned it?! In addition to these two data points, you can also check whale alerts or use filters to find altcoins that fit your strategy!
Data Source: blave.org
