How to Accurately Capture the Market Movement of Event Trading?
A few days ago, when Magic Eden announced its collaboration with Trump to launch a wallet, regardless of the authenticity of the news, ME surged nearly 40% at that moment. This was a great opportunity to determine if arbitrage could be achieved through short selling.
First, open the K-line on Coinglass and observe it with the chart. You can see that during explosive rises, the increase in price is driven by contracts (the spot CVD and contract CVD are clearly diverging). A healthy increase should be driven by both spot and contracts simultaneously, not just by contracts pushing it unilaterally. This often indicates that the market maker is choosing to pump the price based on news to sell off.