$FORM Oversold rebound
I. Overall trend judgment (core)
After experiencing an extremely low volume sideways consolidation around $0.40 for two months, the MACD indicator formed a golden cross underwater, and the red momentum bar turned green. This indicates that the bearish strength has completely exhausted, and the market is trying to organize an oversold rebound.
The mid-term trend of FORM remains weak, but there are clear signals of a stop in the short term. We are currently in the first phase of 'ruin reconstruction,' with bulls attempting to launch a counterattack based on the $0.40 level.
II. Key levels
Resistance level (selling pressure area):
Short resistance: $0.600 - $0.700. This is the first pause platform after the collapse in October. A rebound to this level will face the first resistance from short-term bottom-hunting profits and previously trapped funds.
Strong resistance: $1.000. Once a firm bottom, now a firm top. Falling below $1.00 marks the beginning of FORM's collapse, and regaining this level will require extremely large volume support, which is nearly impossible in the short term.
Support level (defensive area):
Lifeline: $0.400. The absolute floor of the past two months. The price has touched this level multiple times without breaking it, indicating that the main funds are willing to defend this area.
Extreme bottom: $0.350. If $0.40 fails, panic selling will drive the price to historical lows with no bottom in sight.
III. Volume signals
Signal: Huge volume during a crash, low volume at the bottom.
The trading volume during the crash was massive (panic selling), while the current volume, though sluggish, has slightly rebounded compared to the previous silence.
Interpretation: Selling pressure has exhausted. The sellers have sold out, and those remaining are 'playing dead.' Even a small amount of buying pressure can push the price to rebound at this time.
IV. Operational strategy
Holders: Lying down and playing dead.
After a 90% drop, cutting losses is meaningless at this point.
It is recommended to hold firmly at $0.40. The MACD golden cross is a good sign; patiently wait for a rebound to around $0.60 before considering reducing positions.
Empty holders: High risk-reward ratio speculation.
Strategy: Try light positions around the current price of $0.43.
Stop loss: Strictly set at $0.39 (break below the range).
Logic: Use 10% of the stop loss space to target 50% of the rebound space (target $0.60+), which is a typical 'picking up cigarette butts' strategy.
V. Summary
FORM is in an 'observation period,' $0.40 is the line of death, and $0.60 is the discharge point. Although the indicators have improved, remember that this is an oversold rebound, not a reversal!