To be honest, positions with high odds are often hidden right when most people don’t dare to go against the crowd—$LSK is exactly in that kind of situation right now. After the four-hour timeframe broke down through the prior sideways range, the strength of each rebound has been weaker than the last. This doesn’t look like the kind of “washout” you’d expect. From the chart, every time there’s a small bounce, it’s quickly pressed back down; volume hasn’t kept up. That suggests very weak willingness to take the position. What I care about more is the funding rate detail. A high funding rate that can’t be sustained is itself a signal—meaning the longs keep paying but don’t get price upside in return. The longer this structure drags on, the more downside momentum gets accumulated.
For assets with low control/price-management, they usually can’t pull off that kind of “grind the funding rate sideways” play for long. Once a direction is chosen, it often turns into one-sided movement. Judging by the volume-price structure, after breaking key support, there was no strong volume recovery to reclaim it. Instead, the decline continues on shrinking volume with bearish candles—this is a classic weak-market characteristic. Each rebound layer on top is resistance. Every time the price rebounds back toward the prior low area, it gets pinned down, showing that selling pressure is always present. In this kind of rhythm, looking for continuation along the weak direction offers a much better risk-reward than trying to bottom against the trend. I believe there’s still room for a further trend-following dip ahead. There will be pullbacks along the way, but as long as rebounds can’t effectively reclaim the lost ground, the direction is unlikely to change.
What you truly need to guard against is the rapid rebound after a sudden sell-off—that’s where testing your holding mindset really starts. At this position now, sentiment is more concerning than structure. $LSK
Gaze at the vastness of the mountains and seas; read the market’s subtle movements.
Travel with Uncle Xiong and witness every day’s gains and losses.
#LSK
Click below to trade 👇
For assets with low control/price-management, they usually can’t pull off that kind of “grind the funding rate sideways” play for long. Once a direction is chosen, it often turns into one-sided movement. Judging by the volume-price structure, after breaking key support, there was no strong volume recovery to reclaim it. Instead, the decline continues on shrinking volume with bearish candles—this is a classic weak-market characteristic. Each rebound layer on top is resistance. Every time the price rebounds back toward the prior low area, it gets pinned down, showing that selling pressure is always present. In this kind of rhythm, looking for continuation along the weak direction offers a much better risk-reward than trying to bottom against the trend. I believe there’s still room for a further trend-following dip ahead. There will be pullbacks along the way, but as long as rebounds can’t effectively reclaim the lost ground, the direction is unlikely to change.
What you truly need to guard against is the rapid rebound after a sudden sell-off—that’s where testing your holding mindset really starts. At this position now, sentiment is more concerning than structure. $LSK
Gaze at the vastness of the mountains and seas; read the market’s subtle movements.
Travel with Uncle Xiong and witness every day’s gains and losses.
#LSK
Click below to trade 👇