Technical analysis does not always reveal market intentions...
But Open Interest (OI) and Funding Rate data reveal what traders are doing behind the scenes 🧠
🔹 What is Open Interest?
It is the total number of contracts currently open in the market — whether Long or Short.
↳ Rising OI = New traders entering
↳ Falling OI = Liquidation or exit of positions
🔹 What is the Funding Rate?
↳ A mechanism of balance between long (buy) and short (sell) positions in Binance Futures contracts.
↳ If the demand for buying increases, the Long pays the Short rate and vice versa.
🎯 How to combine the indicators to read market intentions?
Scenario 1: Fake buy trap
✅ OI is rising
✅ Funding Rate is very positive (for example +0.15%)
↳ This means that traders are buying heavily, but this forces market makers to hunt them down 👇
💣 Prediction: Long positions will be liquidated soon = sudden downward correction
Scenario 2: Hidden bottom
✅ OI is rising
✅ Funding Rate is negative (for example -0.04%)
↳ Traders are opening short positions while the market quietly rises
🎯 Prediction: Short squeeze soon = strong upward explosion
📌 Practical example (from the real market):
• Before the recent $OP explosion, OI rose with negative Funding → a +30% rise occurred within 48 hours!
💬 Write “📊 Contract Indicators” and I will send you a ready reading table + Binance Futures Live Data links
