$VELODROME
Analysis of bull trap potential and trading scenarios:
1. Probability of Bull Trap (~70%):
Arguments:
- Money is being withdrawn strongly (-13.46M/24h) while the price is rising
- RSI > 60 indicates an overbought area, high risk of correction
- Order book is imbalanced with selling pressure (-24.20M)
- Price increase volatility lacks volume support
- Large investors are opening short positions
2. Trading Scenarios:
Main Scenario (70%):
- Price may test the range 0.23-0.24 and then drop sharply
- Target drop: 0.20 -> 0.185 (previous bottom)
- Stop loss: If it breaks 0.24 with high volume
Strategy:
- Short at the range 0.22-0.23
- Set a tight stop loss at 0.24
- Take profit in parts at: 0.20 and 0.185
- Avoid opening excessively large positions due to strong market volatility
Alternative Scenario (30%):
- Price breaks 0.24 with a spike in volume
- Positive money flow reversal
- RSI creates a bullish divergence
3. Important Price Levels:
Resistance:
- R1: 0.23 (most recent high)
- R2: 0.24 (psychological zone)
Support:
- S1: 0.20 (previous accumulation zone)
- S2: 0.185 (previous bottom)
4. Risk Management Recommendations:
- Do not FOMO buy at the current price level
- Only short when a trend reversal confirmation is present
- Keep position size small (2-3% of account)
- Set a tight stop loss
- Be ready to cut losses if the market reverses strongly
5. Signals to Watch:
- Spike in volume
- Changes in money flow
- Order book balance
- Movement of smart money
- Technical indicators: RSI, MACD, BB
Note: This is for reference only; investors need to have their own risk management strategy and should not copy trade mechanically.