Looking at this XPL/USDT setup right now, traders really need to slow down and read what market is trying to say, not what emotions want. Price is around 0.123 after a long drop from the top near 0.17 area. Clearly trend before was heavy bearish, no doubt about that.
First thing you can see, price already made a strong wick down to around 0.113 – 0.114, that was panic selling. After that, market didn’t continue crashing hard, instead it started moving sideways slowly. This usually shows sellers are getting tired, but buyers are still not very confident yet.
Moving averages telling story too. Price is still below MA25 and MA99, meaning overall trend is still weak. So this is not a place for rushing full buy like crazy. But also sellers are not pushing new low strongly. That’s important.
Volume also increasing a bit on recent green candles. Not big explosion, but at least buyers are showing small interest. MACD is near zero line, histogram very small, this normally means market is deciding direction. This is decision zone.
So what traders can do here:
1. Short-term traders (scalpers / intraday):
If you already holding buy from lower area near 0.115 – 0.118, you can take partial profit on small pumps and keep stop loss tight. Market is not strong enough to hold big longs yet. Quick in, quick out style.
2. Swing traders:
Best decision is patience. Wait for clear confirmation. A strong 4H close above MA25 with volume can give safer buy confirmation. Buying now without confirmation is risky, because price can still retest the lows again.
3. Dip buyers / long-term believers:
This zone looks like accumulation area, but not confirmed bottom yet. Smart way is DCA, not all in. Small buys, spaced out. If price drops again to previous low zone, you are prepared. If it breaks up, you are already inside.
Important warning:
Do not chase green candles here. Trend still bearish on higher timeframes. Many traders lose money because they think “it can’t go lower”, but market doesn’t care about feelings.
Summary:
This setup is not clear bullish, not strong bearish anymore. It’s a wait and react market. Traders who survive are the ones who manage risk, not the ones who predict future. Let price show direction first, then follow.
Trade safe. Capital first, profit later.
