$PNUT Long Liquidation Alert: $11.441K at $0.67592
A long liquidation has occurred at $0.67592, showing weakness in the price as leveraged buyers are losing positions.
Here's a complete breakdown of what could happen next and how to trade it:
Market Insight
1. Key Level ($0.67592):
This price marks a significant liquidation event, acting as a key resistance if the price stays below it or support if it reclaims the level.
2. Current Sentiment:
If the price continues falling, more selling pressure could follow.
A bounce from support levels might attract new buyers.
Trading Plan
Scenario 1: Bullish Move (Price Reclaims $0.67592)
Buy Zone: $0.676 - $0.680 (if the price breaks and holds above $0.67592).
Target:
First Target: $0.700
Second Target: $0.725
Stop Loss: $0.665 (to minimize risk if price dips again).
Scenario 2: Bearish Move (Price Drops Further)
Buy Zone: $0.650 - $0.660 (if the price falls and stabilizes here).
Target:
First Target: $0.675
Second Target: $0.690
Stop Loss: $0.640 (to avoid deeper losses if the price continues downward).
Key Observations
1. Volatility: Expect sharp price moves near the liquidation level as the market reacts to leveraged traders being forced out.
2. Risk Management: Always use stop-loss orders to protect your capital. Never risk more than 2% of your portfolio on a single trade.
3. Watch for Confirmation:
If the price closes above $0.67592, it shows strength and potential recovery.
If it stays below, be cautious of further declines.
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