$RAY The Boom Fades, Be Cautious When Buying the Dip
I. Overall Trend Judgment (Core)
Takeoff and Fall: The price started from around $0.20 at the bottom, experiencing a magnificent main upward wave, reaching a high of around $8.00. However, the subsequent decline was equally severe, with the price falling steadily and breaking through multiple support levels.
Currently, the price has fallen back to around $1.147. This means it has given back 85%-90% of the gains in this bull market, returning to the edge of the bottom range before the rise.
The medium-term trend of RAY is extremely weak. The bubble has burst, market confidence has been severely damaged, and there is a heavy amount of trapped capital above. Currently, the main focus is on whether the support around $1.00 can hold.
II. Key Levels
Resistance Level (Selling Pressure Zone):
Short-term Resistance: $2.00. The recent rebound high and psychological level during the decline. At the current price, a doubling of the price is needed to break even, presenting significant resistance.
Strong Resistance: $4.00 - $5.00. This is the central area of the main upward wave in this market trend. A break below this level would turn it into an unbreakable "ceiling."
Support Level (Defense Zone):
Lifeline: $1.00. A psychologically important round number. The current price of $1.147 is just a step away. A decisive break below this level would trigger panic selling, causing the price to seek support at $0.50.
Extreme Bottom: $0.50 - $0.60. The top of the long accumulation and consolidation zone on the left side of the chart. This is the absolute cost zone for long-term funds.
III. Volume Signals
Signal: High volume at high levels, low volume at low levels.
A huge volume spike occurred in the $6.00 - $8.00 top area (major players distributing their holdings), while the current decline is characterized by gradually shrinking volume. The market has entered a "zombie" state.
IV. Trading Strategy
Owners: Extremely passive. Selling at a loss now is not cost-effective. It's recommended to hold onto $1.00. If it falls below $1.00, it's advisable to exit with a stop-loss to prevent a 50% drop to $0.50; if it rebounds to $2.00, be sure to reduce your position.
For those with no positions: Don't catch a falling knife!
Although it has fallen significantly, the trend remains unchanged.
Left side: Only when a clear bottoming candlestick appears near $1.00, or when it retraces to $0.60, is it worthwhile to take a small position.
Right side: Maintain a wait-and-see approach, waiting for a new bottoming pattern to emerge.
V. Summary
RAY has been brought back to its original state; $1.00 is the last fig leaf, and $2.00 is a difficult hurdle to overcome.After the glitz and glamour fades, proceed with caution when buying at the bottom!