To be honest, the real trigger often has to wait for a fake breakout to be confirmed. $LSK At the moment, the market is stuck right at this point. On the four-hour timeframe, there are signs of a rebound, but the volume simply can’t keep up. I’ve seen this kind of structure too many times; most of the time, it’s just setting up for the next leg down. First, let’s look at the issues left behind by its prior surge. The funding rate has been staying at a high level, which indicates the bulls are still hard-pressing. Retail traders see a big pullback and think, “I’ll buy the dip—it's already dropped so much; surely it’ll bounce.” But the market’s language doesn’t work that way. If the high funding rate doesn’t cool off, then any rebound is effectively handing shares to the shorts.
This is almost identical to the path that previous projects took: use high funding rates to lock in a batch of participants, then slowly grind downward until the market can’t bear it anymore.
Next, let’s examine the volume structure. In the rebound, those few green candles had a成交量 (trading volume) that shrank dramatically compared with the down move, which means the buying pressure is fake—there isn’t real money stepping in. Every step up is met with trapped positions sitting overhead. Pull it up even slightly, and people start running. This price-volume divergence pattern usually signals that the rebound’s height will be limited. Once the move stalls, selling pressure will be released in a concentrated burst. Also, its overall rebound base is still relatively large, meaning there’s profit-taking demand from winners and exit demand from trapped positions—it's just a matter of time. Market sentiment has weakened a bit, and for this kind of asset, the downside rebound (volatility to the downside) will be more pronounced than the broader market.
My view is straightforward: rebound up to the resistance zone is an opportunity to add shorts—not a reversal. The key is whether the rebound can rise with volume and hold above the previous high. If it can’t hold, then the direction is still downward. With the risk-reward ratio in place, the attractiveness of chasing longs is far worse than waiting until the rebound exhausts itself and then shorting with the trend. The market won’t finish moving in one go, but as long as the structure hasn’t broken down, don’t rush to buy the dip. $LSK
Amid the vastness of mountains and seas, observe the subtle shifts in the market.
Walk with Uncle Xiong, and witness the tides of profit and loss.
#LSK
Click below to trade 👇
This is almost identical to the path that previous projects took: use high funding rates to lock in a batch of participants, then slowly grind downward until the market can’t bear it anymore.
Next, let’s examine the volume structure. In the rebound, those few green candles had a成交量 (trading volume) that shrank dramatically compared with the down move, which means the buying pressure is fake—there isn’t real money stepping in. Every step up is met with trapped positions sitting overhead. Pull it up even slightly, and people start running. This price-volume divergence pattern usually signals that the rebound’s height will be limited. Once the move stalls, selling pressure will be released in a concentrated burst. Also, its overall rebound base is still relatively large, meaning there’s profit-taking demand from winners and exit demand from trapped positions—it's just a matter of time. Market sentiment has weakened a bit, and for this kind of asset, the downside rebound (volatility to the downside) will be more pronounced than the broader market.
My view is straightforward: rebound up to the resistance zone is an opportunity to add shorts—not a reversal. The key is whether the rebound can rise with volume and hold above the previous high. If it can’t hold, then the direction is still downward. With the risk-reward ratio in place, the attractiveness of chasing longs is far worse than waiting until the rebound exhausts itself and then shorting with the trend. The market won’t finish moving in one go, but as long as the structure hasn’t broken down, don’t rush to buy the dip. $LSK
Amid the vastness of mountains and seas, observe the subtle shifts in the market.
Walk with Uncle Xiong, and witness the tides of profit and loss.
#LSK
Click below to trade 👇