【$KAS Signal】Short position + decline accompanied by abnormal open interest

$KAS Price drops by -6.75%, but open interest (OI) remains high at $117 million, without a corresponding decrease. This divergence of “price falling and volume increasing,” combined with high OI, suggests the market has a large number of open positions, possibly with longs passively holding, which could set the stage for subsequent liquidity squeeze (liquidation). Currently, it is not an obvious contrarian bottom-fishing opportunity.

🎯Direction: Short

Market logic indicates “Price drops, please determine whether it’s long liquidation or main force distribution based on open interest.” The current chart more closely resembles the early stage of “long liquidation”—price declines but longs are unwilling or unable to cut losses, leading to high open interest. This is a dangerous signal, indicating potential chain liquidation risk below. Healthy pullbacks should be accompanied by decreasing open interest (longs actively exiting). Before clear absorption or support structures appear in price action (PA), and OI drops significantly, it’s best to stay on the sidelines. The key to small losses and big gains is to avoid high-uncertainty traps.

Trade 👇 $KAS

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