Bearish Signals for Firo (FIRO/USDT): Is a Rebound Possible After a Sharp Decline?

$FIRO is currently trading at $1.937, marking a steep drop of -25.18%. The price reflects heavy selling pressure, though it maintains potential for recovery based on key technical factors.

Key Insights:

Support Level: Strong near $1.85; a breakdown could signal further downside.

Resistance Targets: Short-term rebound target at $2.10, mid-term $2.50.

Technical Indicators:

RSI: Oversold, suggesting a possible short-term bounce.

Volume Surge: High sell volume signals caution.

Trading Strategy:

Spot Trading:

Entry Point: Accumulate near $1.85 for a rebound play.

Targets: $2.10 (short-term), $2.50 (mid-term).

Stop-Loss: Place stops at $1.70 to minimize downside.

Futures Trading:

Leverage: Use 2-3x cautiously due to volatility.

Entry Point: Enter long above $2.00 after volume confirmation.

Targets: First $2.20, next $2.50.

Stop-Loss: Tight stop at $1.80.

Risk Management:

Allocate conservatively: 70% for spot trades and 30% for futures.

Monitor for oversold RSI signals and a reversal candle for confirmation.

Hedge positions or diversify into assets with stronger trends.

Careful execution and discipline are essential, given the current downtrend and high volatility.