Good morning! The Asian session just opened and I saw this move in $SXP: down 38.89% in 24 hours, plunging from 0.0038 to 0.0019 before recovering to 0.0022. Simply put, this is an altcoin getting shoved lower when liquidity is thin. A volume of 372K isn’t much at all—you don’t need much to push it down.
I’ve lost money in markets like this before. I saw similar wicks and thought, “It’s already halved, surely it’ll bounce,” so I caught the falling knife at 0.005. The next morning, it was down to 0.003. I caught it three times, and each time I got in halfway down. So when I see a drop like this now, I don’t rush in to catch the bounce. I’ll wait and see whether it can hold first.
I’m watching two levels right now: 0.0019 was last night’s low and is also key support. If it breaks below that, it’ll probably test 0.0017–0.0018. On the upside, I’m watching 0.0026–0.0028 first. That’s roughly the halfway point of this drop, where selling pressure will likely be heavy. Only if it can hold above that level would it make sense to talk about resistance above 0.0030. At 0.0022, it’s in an awkward spot, with plenty of room to move in either direction—not a favorable entry. @老韭菜笔记 😅 If you want to get in, wait for it to fall near 0.0019. Don’t chase it. If $BTC weakens too, small coins like this can keep falling without a floor.
I’ve lost money in markets like this before. I saw similar wicks and thought, “It’s already halved, surely it’ll bounce,” so I caught the falling knife at 0.005. The next morning, it was down to 0.003. I caught it three times, and each time I got in halfway down. So when I see a drop like this now, I don’t rush in to catch the bounce. I’ll wait and see whether it can hold first.
I’m watching two levels right now: 0.0019 was last night’s low and is also key support. If it breaks below that, it’ll probably test 0.0017–0.0018. On the upside, I’m watching 0.0026–0.0028 first. That’s roughly the halfway point of this drop, where selling pressure will likely be heavy. Only if it can hold above that level would it make sense to talk about resistance above 0.0030. At 0.0022, it’s in an awkward spot, with plenty of room to move in either direction—not a favorable entry. @老韭菜笔记 😅 If you want to get in, wait for it to fall near 0.0019. Don’t chase it. If $BTC weakens too, small coins like this can keep falling without a floor.