Market Update: $VELODROME Short Liquidation
A short liquidation of $8.1096K happened at $0.20027, showing strong buying pressure after shorts were forced to close their positions.
This indicates a possible rally ahead. Let’s break down your next steps:
Next Move Analysis
Buy Zone:
$0.1950 to $0.2000
Look for a price pullback into this range. This area provides a good risk-reward entry point, especially if the price finds support here.
Targets:
Target 1: $0.2150 (Initial resistance)
Target 2: $0.2300 (Next key resistance)
Target 3: $0.2500 (Major resistance zone)
Stop Loss:
$0.1900
Set your stop loss below this level to minimize risk if the market reverses.
Technical Indicators to Watch
RSI: If RSI crosses above 50, this could signal the beginning of bullish momentum.
Volume: Pay attention to volume; strong buying pressure will confirm the strength of the move.
MACD: Watch for a bullish crossover to confirm an upward move.
Trading Strategy:
1. Enter Buy Position:
Wait for price to dip into the Buy Zone ($0.1950 - $0.2000) for an ideal entry.
2. Watch for Confirmation:
Look for signs of price stability or a bounce from the buy zone to confirm strength in the market.
3. Take Profit Gradually:
Scale out your position at each target level ($0.2150, $0.2300, $0.2500) to lock in profits.
4. Risk Management:
Always set your stop loss at $0.1900 to protect your capital in case of a reversal.
Market Sentiment:
The short liquidation event shows that short sellers are being forced out, and buyers are currently in control.
This could signal an upcoming upward move, so be ready to act when the price dips into the buy zone.
Disclaimer: This is for informational purposes only and not financial advice. Always do your own research and trade responsibly.