$MYX Trade Idea: The Washout Trap – Hunting the Late Shorts 📉🔥

Here’s the deal: I’m watching this asset bleed from 8.28 USDT down to these lows. Retail has been conditioned to sell every pop. But look closely—the last few candles are telling a different story.

The Higher Timeframe Context (The Narrative) ⚠️

On the 1D and 4H, we are in a clear downtrend. However, momentum is diverging. While price made a lower low near 0.91, the RSI on the lower timeframes held higher. That is bearish exhaustion, not continuation.

The Lower Timeframe Execution (The Setup) 💣

I’m looking at the 15m chart. We just saw a massive liquidity sweep below 0.95, grabbing all the stop-losses of weak longs, and probably triggering a fresh wave of late shorts. But price didn’t follow through; it snapped back quickly.

· Key Observations: We are consolidating above the recent range. The Volume Profile shows the "Point of Control" shifting higher. The bid stack in the order book is massive (over 150k bids at 0.90), providing a strong floor.

Market Psychology 🧠

Most retail traders are looking at the -25% daily drop and piling into shorts here, expecting a crash to zero. Smart money knows that extreme negative funding rates (like we saw recently) and washed-out RSI readings (below 20) are fuel for a short squeeze. They are absorbing the sell pressure.

The Trade Plan (Long) 📈

· Entry Zone: 0.953 – 0.959 USDT.

· Why? This is the "value area" high. If price respects this zone, it confirms support.

· Stop Loss: 0.945 USDT.

· Why? A break below the recent reaction low invalidates the setup. Tight stop keeps risk small.

· Take Profit Levels:

· TP1: 0.980 (Previous resistance / psychological level)

· TP2: 1.020 (Crossing above the 15 EMA)

· Risk-to-Reward: Targeting a solid 1:3 risk-to-reward on the first target, runner to TP2.

Invalidation 🚫

If price closes below 0.945, my thesis is wrong. The selling pressure is heavier than anticipated, and I need to get out. This isn't a "hold and hope" trade; it's a precision snipe.