⚠️ $BULLA
Many traders are looking at the BULLA chart and see a perfect opportunity to buy "on the low." However, the on-chain analysis and futures market numbers scream the opposite.
That's why BULLA right now is a classic "rhino trap":
Anomalous "faith" of the crowd: Despite the catastrophic drop, we see an increase in long positions by +296.7%. The crowd is massively trying to "catch a falling knife," making the asset extraordinarily "heavy." The market rarely turns when there are so many extra passengers in the boat waiting for a miracle.
Giant "canopy" liquidation: Open interest (OI) stands at an astounding $655.5M. This means millions of dollars are locked in losing longs. Any attempt for the price to rise by at least 5-10% will meet fierce resistance from those looking to exit "at zero."
The cost of hope: Funding Rate remains positive (0.1589%). This means that buyers who are already down 95% continue to pay fees to short sellers. This is "slow poison" for the deposit.
Verdict: Until we see capitulation (a sharp drop in L/S Ratio and closure of OI), BULLA will remain in a zone of increased risk. Do not confuse a low price with a good entry point.
It's better to wait until the crowd "surrenders," and only then look for an entry alongside the whales. 🐳