$LPT Pumping? Here’s Why You Should SHORT It NOW for Quick Profits!

Another signal based on one of my previous posts about corrections after pumps.

🚨 Trade Idea: Shorting LPT 🚨

Overview:

LPT (Livepeer) is trading at $16 and showing signs of weakness despite its recent price growth. Open Interest (OI) is declining, which suggests that the upward momentum may lack strength, and buyers might be losing confidence. This divergence between price action and OI presents a solid shorting opportunity.

📈 Trading Plan:

1. Entry Point:

• Short LPT around the $15.80–$16.20 range (current levels).

2. Stop Loss:

• Set a stop loss at $16.80 to protect against a breakout.

3. Targets:

• First Take Profit (TP1): $14.80 (initial pullback zone, ~7.5% profit).

• Second Take Profit (TP2): $13.50 (support area, ~15.6% profit).

• Final Take Profit (TP3): $12.50 (major support, ~21.8% profit).

4. Risk Management:

• Keep your risk-to-reward ratio above 1:3.

• Risk 1–2% of your capital for controlled exposure.

5. Position Sizing:

• Calculate your position size based on your risk tolerance and stop loss.

📊 Why Short LPT?

• Divergence: Price is increasing, but Open Interest is falling, which signals weaker buying pressure and possible long liquidations.

• Overextended Rally: Recent price movements suggest LPT is nearing resistance zones.

• Market Context: If broader crypto sentiment remains neutral or bearish, LPT may retrace quickly.

🚨 Key Warnings:

• Monitor the broader crypto market sentiment closely; unexpected Bitcoin moves could invalidate this setup.

• Avoid overleveraging—liquidation risks are high in volatile markets.

• Be ready to adapt your plan if volume or OI suddenly shifts.

This is not financial advice—always do your own research before executing trades. Stay disciplined, and happy trading!