The current situation of the coin $PROMPT has increased by over 40%, which looks impressive, but it actually just hit a historical low. It feels more like a sharp drop, where the shorts have made enough profit to cover their positions, resulting in a rebound that may not necessarily indicate a true strength.
The key point is that several major holders, who control most of the chips, have their costs significantly higher than the current price, and they are all trapped.
They either wait for the price to rise back to break even (which creates pressure above), or they might be unable to resist cutting losses (which could lead to further declines). Therefore, every small increase in price may encounter selling pressure from them.
Although the price is rising, the total contract open interest is actually decreasing, indicating that mainly the shorts are exiting, not new longs entering. Funds are also flowing out during this rebound. The overall market sentiment is still bearish.
In simple terms, this is a breather after a crash, not a reversal. There is heavy pressure above and unstable foundations below.
If you want to participate, you can only do so with a light position to take short-term fluctuations, entering and exiting quickly, and definitely not treating it as a trend opportunity to take large positions.
For the big trend to develop well, it requires real capital and sustained confidence, and currently, neither of these is visible.
