Analyzing Pair Exposure
Understand how the stability and volatility of liquidity walls across different pool pairings affect their reliability as support and resistance.
What is Pair Exposure in CLOBr?
In CLOBr, "pair exposure" refers to the other token paired with the asset you're analyzing across all liquidity pools and order books. Each pool or order book only ever has exposure to your token and one other (e.g., BONK/USDC, BONK/SOL, BONK/MEME). When you see a liquidity wall in the depth chart, it represents a concentration of your token or a paired token that must be bought or sold through for price to move.
CLOBr pair exposure chart
Why Pair Exposure Matters: Stability vs. Volatility
The key to interpreting liquidity walls is understanding how the paired token affects the wall's stability in USD terms. While the wall itself is always a single token, its value and position in USD can drift depending on the other token in the pool:
- Token/USD (Stablecoin) Pools: Walls in pools paired to USDC or USDT are stable in USD terms. The price bins in the depth chart will not drift as the USD price of your token changes, making these walls reliable for identifying support and resistance.
- Token/SOL Pools: Walls in pools paired to SOL will drift in USD terms as the price of SOL changes. If SOL rises or falls, the USD value of the wall's price bin will move accordingly—even if the wall remains in place in the pool. This means support/resistance levels can shift unexpectedly in USD terms. However, if you toggle to view in SOL terms, then this level should be expected to be stable.
- Token/Memecoin or Illiquid Token Pools: Walls in pools paired to highly volatile or illiquid tokens (e.g., a memecoin) can drift wildly in USD terms, as both tokens' prices move independently. In extreme cases, these walls may provide little to no real support or resistance, since the price of the illiquid pair will simply move with your token, negating the wall's effect.
Interpreting Walls Across Different Pairings
When analyzing the depth chart, consider the following:
- Stablecoin Pairs: These provide the most reliable support/resistance in USD terms. Walls in these pools are "anchored" to the dollar and do not drift as the market moves.
- SOL or Volatile Pairs: These walls can move in USD price bins as the paired token's price changes. A wall that looks strong today may be at a very different USD price tomorrow if SOL or the paired token is volatile.
- Illiquid or One-Sided Pairs: If a wall is comprised of an illiquid memecoin whose only main pool is with your token, it's not really a wall at all—the price of the illiquid pair will just move with your token, so there's no real barrier to price movement.
CEX Stablecoin Pairs: Not Always Stable
Even pairs to stablecoins on centralized exchanges (CEX) can be unreliable. Market makers frequently add and remove orders without them ever being filled, adjusting their positions according to algorithms and market conditions. This means that visible support or resistance in CEX order books may disappear instantly, unlike on-chain DEX liquidity.
Practical Takeaways for Traders
- Focus on walls in stablecoin pools for the most reliable USD support/resistance.
- Be cautious with walls in SOL or volatile token pools—these can drift in USD terms and may not provide the support/resistance you expect.
- Ignore walls in illiquid or one-sided pairs; they do not represent real barriers to price movement.
- Remember that CEX order book walls, even in stablecoin pairs, are not as reliable as on-chain DEX liquidity.
By understanding pair exposure in CLOBr, you can better interpret the true strength and stability of liquidity walls, and make more informed trading decisions based on the real structure of the market.