This pullback is actually a healthy reset. After an aggressive move, the market needed to cool off, shake out late longs, and clear leverage. Corrections like this allow price to rebuild a base, redistribute liquidity, and set up the next clean expansion instead of moving up in a fragile, overextended way.

$NEWT Short Liquidation $4.2929K at $0.12255

I’m watching this zone closely because price is coming back into an area where buyers have previously stepped in with conviction. They’re building strength here, not breaking down impulsively, which tells me this move is corrective rather than distributive.

Trade Setup

Entry Zone: $0.1180 – $0.1225

Target 1: $0.1310

Target 2: $0.1455

Stop Loss: $0.1128

This zone is strong for a few reasons. First, it aligns with prior support that previously acted as a launch point before the last push higher. Second, the current range sits near a key Fibonacci retracement of the recent impulse move, where price has already shown multiple reactions. Each dip into this area has been met with absorption instead of panic selling, which is exactly what I want to see.

I’m watching how price behaves around $0.122. If this level holds and we continue to see shallow wicks and tight candles, that tells me sellers are getting exhausted and liquidity is being trapped on the downside. A push back above local resistance could trigger short liquidations and accelerate the move toward the upside targets.

If this level holds, I expect continuation, not chop. Patience here is key this is where strong moves usually start quietly before expanding fast.