Be Cautious! Market is overleveraged!

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Daily_Dopamine
Oct 26, 2021

Twitter: Daily__Dopamine

In the current state of the market the on chain data is telling us the market is healthy, however one thing which has been historically indicative of a potential market flush: High open interest in the perpetual market. What does this mean: People are longing the market and from the graph shown below, its quite over leveraged. When markets cant sustain this type of volume, it becomes quite possible for a potential flush (as history indicates). We can study historical data and speculate a possible scenario, but many factors can also be attributed to this spike. Therefore, be cautious and observe, and study the market, but we should never speculate a next move without more knowledge about the subject. This is one side of story. Other than the Futures market looking wary, on-chain is still looking super healthy regarding supply, network Dynamics, whale accumulation etc.

For more recent updates on the market please follow me. My name is Daily__Dopamine on twitter, ill try and do more frequent updates on the market as I progress my studies into this space.

Patrick Rychter,


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Daily_Dopamine
Oct 26, 2021

Thanks for reading!

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Conversations (6)

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<email hidden>

2 months ago

good stf had a peek into it, and take a look at the coin margined open interest totally dif picture then last time, and also look at CME OI which is responsible for a big portion of it, minor pullback maybe, but OI metrics are 4 sure dif than last time

I totally agree, probably just a minor setback but I would not consider the probability of it going anywhere lower than 57k, based on the amount of buyers in these areas.

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alfredocesar

Edited 2 months ago

Actually i am observing high numbers in both aged consumed and exchange inflows for almost every token out there along with lower numbers in DAA, which leads to a bigger correction and expected lower prices. Anyway thanks for sharing your insight. Have a great day 😉

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anonymous

2 months ago

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good insight, where can i find this chart on santiment?

You can find a good indication of this data by looking at Funding Rate, this is a good indicator for showing what is happening on the perpetual market.