Amberdata Blog Using Open Interest to Gauge Participation and Price Potential

Open interest (OI) is more than just a line item in the derivatives market-it's a critical gauge of how many contracts remain active, reflecting the level of conviction among traders and the potential energy behind upcoming price movements. In the financial markets, particularly in crypto, watching OI can help you see whether traders are piling in, taking profits, or quietly stepping back. But it's not merely about the numbers: context matters. A jump in open interest could mean building momentum if prices are rising, or it might signal oversaturation when prices stagnate.