$POL Here's a detailed analysis for based on the liquidation event and current market sentiment.
Overview of the Event.
A long liquidation of $2,195.5K at $0.47937 indicates that a large number of traders were forced to close their long positions. This often suggests a sudden price drop, resulting in bearish pressure. However, such events can also present opportunities for entry if the price stabilizes or shows signs of recovery.
What’s Next.
Current Market Sentiment.
The liquidation indicates that the price broke below a key support level, leading to panic selling.
Look for signs of price stabilization or a bounce near strong support zones.
Buy Zone.
$0.440 to $0.465. This range appears to be a strong accumulation zone where buying interest might pick up.
If the price dips below $0.440, reassess the market before entering.
Target Levels.
First Target. Short Term. $0.500
Second Target. Mid Term. $0.530
Third Target. Aggressive. $0.560
Stop Loss Levels.
Set a stop loss at $0.425 to protect against further downward movement.
Technical Analysis Insights.
Support Levels: $0.440, $0.400
Resistance Levels: $0.500, $0.530
Look for increased volume and RSI bounce from oversold levels to confirm a reversal.
Risk Management Tips.
1. Position Size. Do not risk more than 2-3% of your portfolio on this trade.
2. Confirmation. Wait for a bullish signal, such as a green candle above $0.465, before entering.
3. Avoid FOMO. If the price doesn’t stabilize or confirm support, do not rush to buy.
Conclusion
$POL is at a critical level after the liquidation event. Use the buy zone carefully and monitor the price action closely. Stick to your targets and protect your capital with a strict stop loss.
If you need further guidance or updates, feel free to ask.
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