📚 Crypto Education: What is Open Interest (OI) in Futures Trading?

Open Interest refers to the total number of active futures contracts that haven’t been settled yet.

It’s a key metric that traders watch to understand market strength and sentiment.

🔍 Why It Matters:

📈 Rising OI + Rising Price = Strong bullish momentum

📉 Rising OI + Falling Price = Bearish confirmation

❌ Falling OI = Traders closing positions, possible trend reversal

💡 Example:

If $ETH price goes up and OI also hits an all-time high (ATH), it means smart money is backing the move — not just hype.

📊 Keep an eye on OI when entering or exiting trades. It often shows the real market pressure before price does.

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