Entering coin $DOT now could make you easy prey for the market maker.
Let me show you what's happening with this coin 👇
After a strong rise from 1.01 to 1.30, driven by short liquidations, the price reached an important resistance zone.
At the 1.30 high, open interest started to decline. This indicates that long positions were closing and previous long positions were being liquidated.
Positive funding rates mean that retail traders are still opening long positions with every bounce.
Liquidity in the coin is weak. The move is driven only by liquidity from liquidations.
There is a heavy short liquidation zone at 1.27/1.30.
So what does this mean?
The coin is going through a phase that market makers love. We may see a rise targeting the 1.27/1.30 zone to liquidate shorts and hit stop losses, before a sharp drop toward the uptrend areas to put pressure on longs and liquidate them before any further move.
A move above the resistance zone requires strong liquidity, not fragile liquidity. We'll update you if this scenario plays out.
Let me show you what's happening with this coin 👇
After a strong rise from 1.01 to 1.30, driven by short liquidations, the price reached an important resistance zone.
At the 1.30 high, open interest started to decline. This indicates that long positions were closing and previous long positions were being liquidated.
Positive funding rates mean that retail traders are still opening long positions with every bounce.
Liquidity in the coin is weak. The move is driven only by liquidity from liquidations.
There is a heavy short liquidation zone at 1.27/1.30.
So what does this mean?
The coin is going through a phase that market makers love. We may see a rise targeting the 1.27/1.30 zone to liquidate shorts and hit stop losses, before a sharp drop toward the uptrend areas to put pressure on longs and liquidate them before any further move.
A move above the resistance zone requires strong liquidity, not fragile liquidity. We'll update you if this scenario plays out.