#I've always been amazed by the people in the crypto community! Every time you open a position and share your entry points and the current price, like this time with NOT coin on CoinMarketCap, people start shouting, "You will be liquidated soon." Is it really possible that everyone in this space is trading from liquidation? While this type of trading is common and understandable, it all depends on the risk you put into the position.
For example, if you enter $100 with 10x leverage, you risk losing all $100 if the price moves against you and reaches the liquidation price. Conversely, entering $1,000 with 10x leverage and using a 1% stop loss means you're still risking $100. In both cases, the amount you're willing to sacrifice if the price moves against you is the same.
If you enter a position and hold it, on any exchange, you can lock in 10%, 25%, 50%, or 75% of the position even if your intended take profit is far away. A basic trading plan might involve taking $100 in profit after a 2% gain and moving your stop loss to breakeven, ensuring you keep your earnings even if the price reverses and hits your stop loss.
Despite many traders working exclusively from liquidation, Notcoin (NOT) has shown resilience. Aiming for a 38% rise, NOT has important support levels at $0.0072 and $0.0066. Recently, NOT experienced a 115% rally from May 24th to May 28th, facing strong resistance at $0.0099.
The $0.0072-$0.0075 region, previously a resistance zone, has flipped to support, pushing NOT to $0.0099. Analysts predict a possible rally to $0.0112 and $0.0132, though a drop in Bitcoin (BTC) below $67k could impact this trend. Short liquidations and a rising Open Interest indicate a bullish sentiment, suggesting the potential for further gains.
In the past two days, short liquidations spiked, pushing prices higher. The spot CVD showed strong upward movement, indicating the rally wasn't solely driven by derivatives markets, suggesting more gains ahead.
Traders believe NOT will continue its upward trend, driven by robust market sentiment and solid support levels.