Major Liquidation Alert on $PNUT
A long liquidation of $10,109 just occurred at the critical price level of $0.6832. This suggests a significant shift in market sentiment as bulls were forced to exit their positions under pressure.
What Does This Mean.
Liquidation: This happens when traders holding leveraged long positions cannot maintain their margin requirements, causing their positions to be sold automatically.
Price Impact: The liquidation level of $0.67735 indicates potential support being broken or intense sell pressure, adding volatility.
Market Analysis
1. Bearish Momentum: A large long liquidation like this often implies increased selling pressure, potentially leading to further downside.
2. Key Support Levels: Watch for support below $0.67735. If bulls don’t step in, we could see a cascade of liquidations.
3. Resistance Above: Any recovery could face resistance near this liquidation zone as traders attempt to recover.
For Traders
Short-term Strategy:
Buy Zone: Wait for a bounce near $0.660-$0.670 if support is confirmed.
Target Levels: First target at $0.690, second at $0.710.
Stop-Loss: Set tight stop-loss below $0.655 to manage risk.
Aggressive Traders: Consider shorting if price retests $0.67735 and faces rejection. Target lower levels like $0.650, but ensure proper risk management.
Stay alert and trade smart.
This could mark the beginning of a significant move for $PNUT
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