I Like your Analysis, let's hope it works.
Can you do a similar Analysis for BAT
Can you do a similar Analysis for BAT
Post
Luis Grunin
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Bullish#DCR
Today’s Decred Analysis
DCR is currently being capped by a very thick sell wall, and it feels like there is a strong intention to suppress the price.
However, the orders currently sitting on the order book are likely the short sellers’ last remaining ammunition.
The reason can be found in the market data.
Market data
https://www.binance.com/en/margin/market-data
At present, repayments exceed borrowings, yet the Available (lending inventory) remains extremely low.
In other words, even after repayments, the lending capacity is not increasing, which means that new borrowing for additional short positions is no longer possible.
Some might think, “What if they secured spot supply via OTC (over-the-counter) trades and are placing it on the sell wall?”
However, looking at the current interest rate environment, this scenario is unlikely.
Interest history
https://www.binance.com/en/margin/interest-history
If they had been able to secure spot supply through OTC, the standard move would be to first repay the high-interest borrowings in order to reduce funding costs.
The fact that there have been no large-scale repayments and that high interest rates persist is the strongest evidence that they have not been able to secure spot supply via OTC.
Based on all of this, the orders we see now are likely the limit of what they can do.
By steadily buying every day, the sell wall will gradually be eaten away, the high interest rates will drain the short sellers’ stamina, and eventually a squeeze should occur.
I trust this analysis and will continue accumulating with confidence.
Today’s Decred Analysis
DCR is currently being capped by a very thick sell wall, and it feels like there is a strong intention to suppress the price.
However, the orders currently sitting on the order book are likely the short sellers’ last remaining ammunition.
The reason can be found in the market data.
Market data
https://www.binance.com/en/margin/market-data
At present, repayments exceed borrowings, yet the Available (lending inventory) remains extremely low.
In other words, even after repayments, the lending capacity is not increasing, which means that new borrowing for additional short positions is no longer possible.
Some might think, “What if they secured spot supply via OTC (over-the-counter) trades and are placing it on the sell wall?”
However, looking at the current interest rate environment, this scenario is unlikely.
Interest history
https://www.binance.com/en/margin/interest-history
If they had been able to secure spot supply through OTC, the standard move would be to first repay the high-interest borrowings in order to reduce funding costs.
The fact that there have been no large-scale repayments and that high interest rates persist is the strongest evidence that they have not been able to secure spot supply via OTC.
Based on all of this, the orders we see now are likely the limit of what they can do.
By steadily buying every day, the sell wall will gradually be eaten away, the high interest rates will drain the short sellers’ stamina, and eventually a squeeze should occur.
I trust this analysis and will continue accumulating with confidence.
