Current Price Analysis: SIGN has officially broken through the psychological defense line of 0.041. The bullish defense has collapsed, and market sentiment is shifting from wait-and-see to panic selling.
1. Breakout Confirmation: Why is 0.041 so important?
Support and Resistance Switch: 0.041 was the core area of the tug-of-war between bulls and bears. Now that it has broken down with increased volume, it means that the previous support has completely turned into strong resistance. As long as the price cannot stabilize above 0.041 on a rebound, any rise is just a trap for more buyers.
Moving Averages Lost: The moving average systems on the 1-hour and 4-hour levels have formed a 'waterfall' divergence, with a very standard bearish arrangement, showing no signs of a stop-loss or stabilization in the short term.
2. Deep Forecast: Why can we continue to short?
Support Vacuum Below: From the K-line chart, after breaking 0.041, there is only a decent trading volume area down to the range of 0.035 - 0.033. This means there is an approximate vacuum zone of 15%-20% in between, with very little resistance to further decline.
Bullish Liquidation Effect: Leveraged funds that placed buy orders around 0.045-0.050 are facing liquidation pressure. As the price approaches their liquidation line, bulls are forced to close their positions, leading to a chain reaction that further accelerates the market's bottoming out.
Weak Rebound: Observing the market, it can be seen that every time there is a slight pullback in price, it is quickly smashed back down by large orders. This indicates that large players are withdrawing liquidity, and there are very few buyers available.
3. Practical Operation Guide (High Winning Rate Plan)
Entry Logic: Currently, a small position can be taken, or wait for a pullback near 0.0415 - 0.042 to add to the short position (the pullback is a selling point).
First Target (TP1): 0.036 (initial take profit, securing gains).
Ultimate Target (TP2): 0.032 (this position is the previous starting point, highly attractive).
Stop Loss (SL): Strictly control above 0.045. As long as it does not increase significantly above 0.045, the trend cannot be considered reversed. #SIGNUSDT #Contract Trading