CHIP rebounds from the lows, up +6.21%—don’t rush to chase it. Volume isn’t keeping up, so I’m staying bearish on $CHIP
CHIP bounced sharply off its lows today, with the daily chart showing a gain of +6.21%. It looks impressive, but the 4-hour chart tells a different story.
The current 4-hour candle opened at 0.05005 and is at 0.05108, after reaching a high of 0.05225—a gain of just 2.06%. In other words, most of the daily 6% move came from a wick and a sentiment-driven bounce, not genuine trend continuation.
Looking closer, the highs of the last four 15-minute candles have been stepping down: 0.05138 → 0.05135 → 0.05132 → 0.0512. The lows aren’t managing to push higher either, and the closing price slid from 0.05116 to 0.05108. The signs of a rally fading are obvious: every time price hits 0.05225, it gets pushed back down.
Volume tells the same story: over the past four hours, total volume in the last two hours was only 3.29% higher than in the first two. Price is bouncing, but volume isn’t following through. I’d rather treat this kind of recovery as an opportunity for bears than the start of a reversal.
My plan is straightforward:
- Bearish bias; watch 0.05115 as the key level. If price can’t hold above it, that’s weakness.
- Resistance is at 0.05225. If price can’t break through, it’s just a rebound.
- The first downside target is 0.05004, the starting point of this bounce off the lows.
Of course, nothing is certain in the market. If CHIP gets back above 0.05225 and holds, this short-term bearish thesis is invalidated, and I’ll admit I was wrong and exit.
At this level, chasing a long really doesn’t offer much upside. With a low-volume bounce and lower highs, I’d rather wait and see if it pulls back toward 0.05004. Don’t let that +6.21% daily candle spook you—short-term momentum matters more than a single day’s gain. $CHIP
CHIP bounced sharply off its lows today, with the daily chart showing a gain of +6.21%. It looks impressive, but the 4-hour chart tells a different story.
The current 4-hour candle opened at 0.05005 and is at 0.05108, after reaching a high of 0.05225—a gain of just 2.06%. In other words, most of the daily 6% move came from a wick and a sentiment-driven bounce, not genuine trend continuation.
Looking closer, the highs of the last four 15-minute candles have been stepping down: 0.05138 → 0.05135 → 0.05132 → 0.0512. The lows aren’t managing to push higher either, and the closing price slid from 0.05116 to 0.05108. The signs of a rally fading are obvious: every time price hits 0.05225, it gets pushed back down.
Volume tells the same story: over the past four hours, total volume in the last two hours was only 3.29% higher than in the first two. Price is bouncing, but volume isn’t following through. I’d rather treat this kind of recovery as an opportunity for bears than the start of a reversal.
My plan is straightforward:
- Bearish bias; watch 0.05115 as the key level. If price can’t hold above it, that’s weakness.
- Resistance is at 0.05225. If price can’t break through, it’s just a rebound.
- The first downside target is 0.05004, the starting point of this bounce off the lows.
Of course, nothing is certain in the market. If CHIP gets back above 0.05225 and holds, this short-term bearish thesis is invalidated, and I’ll admit I was wrong and exit.
At this level, chasing a long really doesn’t offer much upside. With a low-volume bounce and lower highs, I’d rather wait and see if it pulls back toward 0.05004. Don’t let that +6.21% daily candle spook you—short-term momentum matters more than a single day’s gain. $CHIP