Current price: $0.2103 (Real-time data 2025-12-24 11:42 UTC)
Long core logic:
WET is the most oversold among the three assets, with the 1-hour RSI plummeting to 25.3 entering deep oversold territory, and the 4-hour RSI at 35.3 also on the edge of being oversold, indicating an extremely pessimistic technical outlook. The position volume has collapsed by -14.84% in 24 hours, showing large-scale panic deleveraging, coupled with $305k in liquidations in the last 24 hours, with long liquidations of $273k accounting for 90% dominance, almost all chasing up positions have been forcibly liquidated, and the current price level has a very low leverage ratio providing a margin of safety. The price of $0.2103 is close to the 1-hour Bollinger Band lower edge of $0.2068, only 1.7% away from support, forming a technical buying window.
Liquidation Structure Support:
The liquidation heatmap shows that the accumulation of $487k-735k long liquidation pressure in the $0.201-0.205 range forms strong support at the bottom, and the current price is only 0.5-4.4% away from the support, providing a large safety margin. Above, the short liquidation at the starting point of $0.211 is only $53k, which is very light, and once the price stabilizes and rebounds, the resistance is limited. All short-term moving averages (1h EMA12 $0.2175, EMA26 $0.2239, SMA50 $0.2331) are clustered above the price forming dense resistance, but the oversold state creates conditions for a breakout.
Risks and Opportunities Coexist:
The biggest risk is that the funding rate shows positive values (Binance/Bybit 0.00125-0.0050%, KuCoin as high as 0.023%), meaning that bulls need to pay fees to maintain positions, which is unfavorable for longs. More seriously, the MACD is still accelerating downwards (1h histogram -0.00080, 4h histogram -0.0040), indicating the continuation of short momentum, and overselling may become more extreme. However, from another perspective, the 90% liquidation ratio of longs and the -14.84% decline in position volume indicate that all floating positions have been thoroughly cleaned out. If the overall market stabilizes, WET as a deeply oversold asset will rebound first.
Fundamental Background:
WET (HumidiFi) as a prop-AMM DEX on Solana, with an FDV of $210M fitting in the mid-cap range, experienced significant volatility after being listed on Binance perpetual contracts on December 10. While TVL data is missing, the 24h DEX trading volume reached $915M, and $7.68B over 7 days indicates high protocol activity. The top 10 holders account for 90.51% which is concentrated but without exchange labels, suggesting that whale selling pressure may have been partially released. The current price has significantly retraced from the listing price, making a technical rebound likely.
Strategy Setup:
Direction: Long | Leverage: 2-3x (to reduce risk against positive funding rates and declining MACD, defensive low leverage setting) | Entry Strategy: Wait for the 1-hour MACD histogram to turn positive or RSI to rise above 30 to confirm bottoming signals, or directly place orders in the $0.207-0.210 support range | Stop Loss: $0.200 (below liquidation support, allowing for a 4.9% stop loss space) | Primary Target: $0.223 (1-hour EMA12 resistance, potential increase of +6.0%) | Extended Target: $0.233 (1-hour SMA50, potential increase of +10.8%) | Risk-Reward Ratio 1.22, holding period 12-24 hours, closely monitor BTC trends, and take profit immediately if BTC rebounds.
Core Viewpoint:
WET's 1-hour RSI is 25.3, indicating deep overselling combined with a position volume drop of -14.84% and 90% of long positions liquidated, thoroughly cleaning out leverage. Support below at $0.201 has accumulated $487k-735k in liquidations, providing a 1.7% safety margin. Although the funding rate is positive at +0.005% and the MACD is accelerating downwards increasing risk, the extreme overselling creates a window for a rebound. Long positions with 2-3x low leverage at $0.207-0.210, targeting $0.223-0.233, with a stop loss at $0.200, may see a technical recovery within 24 hours, with a potential increase of 6-11%, high risk high reward.$WET
