Will the WLD liquidations continue?

How to confirm the next movement of Wld? 1️⃣ If the OI stabilizes and the volume decreases → The liquidations have ended and the price could consolidate.

output: As the price of WLD continues to drop, traders are wondering if the liquidations will continue. Here's a quick analysis to help you understand the situation:

1️⃣ The OI had a large spike recently (over 200M in open contracts). This indicates that there was significant interest in trading WLD with leverage.

2️⃣ After the spike, the OI has decreased. This suggests that some traders are closing positions or that there were liquidations.

3️⃣ In the past, when the OI reached similar levels, there was a strong drop afterward. This may indicate that if selling pressure continues, we could see more liquidations in case of a price drop.

Based on these observations, it's possible that the liquidations will continue, but to a lesser extent. This is because a significant portion of the leveraged positions may have already been closed, as indicated by the decrease in the OI. However, if the price of WLD drops further, it could trigger more liquidations.

To confirm the next movement of WLD, you can also consider the following:

- If the OI stabilizes and the volume decreases, it usually indicates that the liquidations have ended and the price could consolidate.

- If the OI decreases and the volume increases, it suggests that the liquidations are still continuing and we might see more drops.

- If the OI and volume increase together, it could indicate that new traders are entering, which can either lead to a price bounce or a new trend.