$龙虾 Wait and see. When there’s a daily-chart crash like this, whatever you do, don’t try to catch a falling knife.
This lobster chart is painful to look at. It plunged 38% in just 24 hours. On the daily chart, it’s been sliding all the way down from a high of 0.31 to the current 0.045, without a single decent rebound. Look at the Bollinger Bands—the lower band is nearly in negative territory, and the price is way below the middle band (0.10), an extreme deviation.
Although the MACD histogram below the zero line is starting to shrink, both the DIF and DEA are still deep underwater. That means bearish momentum may be fading a little, but the overall trend remains extremely weak.
Going long here is asking to get wrecked, while going short could easily get you liquidated by a sharp oversold-rebound wick. The whales have been dumping all the way down after pumping it hard; getting in now means catching the bag.
Take your time and wait. Either wait until it can’t fall any further, then let it base sideways at the bottom and form a long lower wick before trying a tiny position for an oversold bounce; or wait for it to rebound toward the middle band at 0.10, confirm that it can’t break through, and then short with the trend. With this kind of one-way crash, it’s a mess—watch more, trade less. Protecting your capital is what matters most.
This lobster chart is painful to look at. It plunged 38% in just 24 hours. On the daily chart, it’s been sliding all the way down from a high of 0.31 to the current 0.045, without a single decent rebound. Look at the Bollinger Bands—the lower band is nearly in negative territory, and the price is way below the middle band (0.10), an extreme deviation.
Although the MACD histogram below the zero line is starting to shrink, both the DIF and DEA are still deep underwater. That means bearish momentum may be fading a little, but the overall trend remains extremely weak.
Going long here is asking to get wrecked, while going short could easily get you liquidated by a sharp oversold-rebound wick. The whales have been dumping all the way down after pumping it hard; getting in now means catching the bag.
Take your time and wait. Either wait until it can’t fall any further, then let it base sideways at the bottom and form a long lower wick before trying a tiny position for an oversold bounce; or wait for it to rebound toward the middle band at 0.10, confirm that it can’t break through, and then short with the trend. With this kind of one-way crash, it’s a mess—watch more, trade less. Protecting your capital is what matters most.