ALLO is moving, but it’s important to understand why it’s moving. The recent bounce isn’t coming from fresh bullish conviction — it’s being driven by a short squeeze, with bears closing positions rather than new buyers stepping in. That distinction matters, especially in a high-leverage environment like this.
Price is still hugging its all-time lows around $0.117, consolidating just above a critical $0.114 support. Technically, the structure remains weak. ALLO is trading below key short-term EMAs, MACD is negative, and RSI sitting near 48–51 shows a lack of real momentum. This is not a trend reversal — it’s a fragile pause.
Risk is elevated. The margin long/short ratio above 30 signals crowded long positioning, and long whales are deeply underwater, sitting on roughly –41% unrealized losses with an average entry near $0.20. That creates heavy overhead supply on any rally, while increasing the danger of cascading liquidations if support breaks.
Short whales are only marginally profitable, which is why $0.119 is the key trigger. A clean break above it could force more short covering and extend the squeeze toward $0.125. But without follow-through buying, that move would remain purely tactical, not structural.
Community sentiment reflects this reality — divided and cautious. Some see short-term trade setups, while others question the sustainability of the broader AI token narrative, especially for a micro-cap asset with high volatility.
This is a high-risk, short-term trading environment, not a conviction hold. If you’re trading it, risk control is everything. If you’re investing, patience may be the better position. In leverage-heavy markets, price can move fast — but it can unwind even faster.
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