SOXL is dropping again—over the past 24 hours it’s down 8.4%. It went from 121 all the way down to 106, then bounced back to 109. The moving averages are pressing overhead, with five bearish candles and one bullish candle on the 4-hour chart. This is a real drop, but when I go through this set of numbers, the more I look, the more something feels off.
While it’s falling like this, the contract open interest has actually risen by 22% over the past 7 hours. Whale accounts are 84.9% long and even added another 8.9%. The active buy orders make up 54.5%, pressing against the sell orders. The price is falling, but money is going into longs—this is the most common accumulation pattern at the end of a sharp sell-off.
The funding rate is still stuck in negative territory. The shorts haven’t gotten the advantage—they’re paying interest instead. With this kind of structure, once it really pops, it can turn into a short squeeze: the harder it drops, the more fuel the rebound has.
Trade plan: Go long directly around 109, aiming for a repair back into the 111–113 moving-average zone. There’s only one risk—if it breaks below the 106 low, it would mean this move wasn’t accumulation but catching a falling knife. I’ll flip short immediately.
#soxl $SOXL
While it’s falling like this, the contract open interest has actually risen by 22% over the past 7 hours. Whale accounts are 84.9% long and even added another 8.9%. The active buy orders make up 54.5%, pressing against the sell orders. The price is falling, but money is going into longs—this is the most common accumulation pattern at the end of a sharp sell-off.
The funding rate is still stuck in negative territory. The shorts haven’t gotten the advantage—they’re paying interest instead. With this kind of structure, once it really pops, it can turn into a short squeeze: the harder it drops, the more fuel the rebound has.
Trade plan: Go long directly around 109, aiming for a repair back into the 111–113 moving-average zone. There’s only one risk—if it breaks below the 106 low, it would mean this move wasn’t accumulation but catching a falling knife. I’ll flip short immediately.
#soxl $SOXL
