$NEIRO I have received some private messages asking where the bottom is. I cannot tell you where the bottom is; it is not like BTC, which is the leader of all cryptocurrencies and has a clear consensus. Unfortunately, it is a strong manipulation coin, and where it drops to is determined by it. When it was at 0.002, people thought 0.0019 was the bottom, and when it dropped to 0.0019, they thought 0.0018 was the bottom. Then, when 0.0018 broke, some people thought this was panic and believed 0.0017 and 0.0016 were the iron bottoms, calling for people to refuse to sell. As a result, 0.0016 quickly broke down to 0.001388.
Last night can truly be considered a moment of panic; at that time, you didn’t need much volume to drop several points, and the long-to-short ratio plummeted.
It is generally believed that when the price of coins drops, the long-to-short ratio rises because the long side is stuck, and people are unwilling to accept losses, causing the long side to increase. However, in a panic, the long-to-short ratio will decrease, as only in panic will people sell their coins at low prices regardless of their losses.
Currently, the long-to-short ratio is above 1.75, so yesterday was likely a painful cut for those who had been stuck for a long time, with a new batch coming in, turning into a new set of stuck positions. Or during the price rise today, they chased higher and got stuck. It is evident that we are experiencing characteristics of a bear market, and I do not believe that the long-to-short ratio can endure at 1.75 to pull the market up in a good-natured attempt to help them get unstuck.
So where is the bottom? No one knows; we can only endure and wait for BTC to stabilise and enter an upward channel. However, meme coins tend to react before BTC, so it might be worth paying attention to a few other meme coins. But this is a strong manipulation coin, which is quite frustrating; you cannot judge the bottom by conventional wisdom, but it should be somewhat helpful as the 'dog' won't go against the trend.
Based on the limited data from the last few days, you can check the long-to-short ratio, which has never risen above 1.75. My current view is that anything below 1.5 is the bottom.
Another method of judgment is the obvious increase in trading volume and the forming of a strong bullish trend day candlestick. The lowest point from the previous day or that day can generally be considered the bottom. This method can be resonated with the long-to-short ratio and the shift in bullish or bearish sentiment; if both conditions are met, it can basically be identified as the bottom.
So the correct trading approach is to trade on the right side, and not to rush in blindly.