Coin $ZHIPU (Massacre and possible violent rebound!)
Current price: 136.02
Technical and psychological breakdown:
Very violent drop: The coin has been hit hard, with strong negative momentum (-11.25%), and trading volume has exploded to 10 times the normal volume! This means a whale just dumped massive amounts.
Deep sell-side exhaustion: Due to this violent drop, the RSI indicator on the 1-hour timeframe reached 24.0 (the extreme oversold / panic level).
Late shorts: The funding rate has turned very negative to -0.111%. This indicates that many traders are opening short positions now, too late, and they are paying huge fees to the buyers!
Bottom hunters (retail): The retail indicator (L/S = 1.63) means individuals have started buying (Long) in an attempt to catch the falling knife.
Summary and decision (how to play it?): This pattern is called (Oversold Short Squeeze). Because the shorts entered too late and the RSI is crushed, any small bounce upward will trigger liquidations for these shorts, creating a very strong green relief-bounce candle (Relief Bounce).
Entry strategy (Long - high risk): If you’re brave and skilled at catching fast rebounds, this is a chance for a very quick Long trade.
Target: Aim for the 143 to 145 area, which is the average VWAP zone the price should return to in order to catch its breath.
Strict stop-loss: Just below the last bottom 127
#ShareMyTradFi
Current price: 136.02
Technical and psychological breakdown:
Very violent drop: The coin has been hit hard, with strong negative momentum (-11.25%), and trading volume has exploded to 10 times the normal volume! This means a whale just dumped massive amounts.
Deep sell-side exhaustion: Due to this violent drop, the RSI indicator on the 1-hour timeframe reached 24.0 (the extreme oversold / panic level).
Late shorts: The funding rate has turned very negative to -0.111%. This indicates that many traders are opening short positions now, too late, and they are paying huge fees to the buyers!
Bottom hunters (retail): The retail indicator (L/S = 1.63) means individuals have started buying (Long) in an attempt to catch the falling knife.
Summary and decision (how to play it?): This pattern is called (Oversold Short Squeeze). Because the shorts entered too late and the RSI is crushed, any small bounce upward will trigger liquidations for these shorts, creating a very strong green relief-bounce candle (Relief Bounce).
Entry strategy (Long - high risk): If you’re brave and skilled at catching fast rebounds, this is a chance for a very quick Long trade.
Target: Aim for the 143 to 145 area, which is the average VWAP zone the price should return to in order to catch its breath.
Strict stop-loss: Just below the last bottom 127
#ShareMyTradFi