$Lobster has been cut in half from its high, down 31% in 24h, currently at 0.04116. On Gate perpetuals, the 24h high was 0.07763 at 11:00 yesterday, and the low was 0.03802 at 5:00 this morning. 24h trading volume was about 24.75 million U.
Price action: The spike to 0.0776 at 11:00 yesterday was the top. A sharp drop at 13:00 took it to 0.0634, and it started trending downward. Four consecutive bearish candles followed from 17:00 to 20:00. At 19:00, about 1.66 million U drove it down from 0.0536 to 0.0433; at 20:00, it tested 0.042. Then it moved sideways between 0.0408 and 0.0448 for six hours, from 21:00 to 2:00. At 3:00, it broke down again to 0.0394, and at 5:00 it set a new low of 0.0380. It has now bounced back to 0.041 on declining volume.
Reasons: First, BTC is weak too, currently at 83223, down 2.7%, and there are no buyers for small-cap coins. Second, the funding rate is +0.005% (4h). Even after the price has fallen by more than half, longs are still paying and haven’t capitulated, so dip buyers keep getting trapped.
My trade: I’m not chasing shorts; it’s too close to 0.038. I’ll look to short a rebound to 0.0435–0.0445, using 3x leverage, with a stop at 0.0455 and a target of 0.038. Position size: 10% of my portfolio. If it reclaims 0.0455 on strong volume, I’ll admit I’m wrong and exit.
Price action: The spike to 0.0776 at 11:00 yesterday was the top. A sharp drop at 13:00 took it to 0.0634, and it started trending downward. Four consecutive bearish candles followed from 17:00 to 20:00. At 19:00, about 1.66 million U drove it down from 0.0536 to 0.0433; at 20:00, it tested 0.042. Then it moved sideways between 0.0408 and 0.0448 for six hours, from 21:00 to 2:00. At 3:00, it broke down again to 0.0394, and at 5:00 it set a new low of 0.0380. It has now bounced back to 0.041 on declining volume.
Reasons: First, BTC is weak too, currently at 83223, down 2.7%, and there are no buyers for small-cap coins. Second, the funding rate is +0.005% (4h). Even after the price has fallen by more than half, longs are still paying and haven’t capitulated, so dip buyers keep getting trapped.
My trade: I’m not chasing shorts; it’s too close to 0.038. I’ll look to short a rebound to 0.0435–0.0445, using 3x leverage, with a stop at 0.0455 and a target of 0.038. Position size: 10% of my portfolio. If it reclaims 0.0455 on strong volume, I’ll admit I’m wrong and exit.