$HOT ⬇️ Double Alert: 6.7% Drop & 49.5x Volume on
$HOT - After such an extreme dump and volume anomaly, the path of least resistance remains down, but a short-term bounce is possible if this was a liquidity grab. I expect price to test the 0.000296–0.000293 zone for support. If buyers step in and we see a strong reversal candle or formation, a bounce toward 0.000303, possibly even 0.000313, is possible.
- Clear short setup: If price attempts to bounce and fails at 0.000303–0.000313 (look for bearish confirmation like pin bars or engulfing candles), enter a short position. Take profit at 0.000296, with a second target at 0.000290. Place stop-loss above the swing high of the rejection candle.
- If price breaks and closes below 0.000290, more downside is likely, targeting 0.000285 and possibly 0.000278. Do not long blindly; only consider it if you see a rapid absorption or a sharp reversal after a stop-hunt below these levels.
- Confirmation to wait for: On a short, look for rejection wicks, lower-highs on lower timeframes, or a drop in buy volume. On a long scalp, look for hammer candles, V-shape recoveries, or a fast return above 0.000303.
- If price unexpectedly reclaims 0.000313 with strong volume, my bearish bias would shift, and I would expect a move to 0.000330 or 0.000342.
- This volume event is likely a mix of panic selling and possible smart money distribution; be careful with leverage and avoid chasing after such a move without confirmation. Wait for price structure to confirm continuation or reversal.
📝 This is not investment advice, but an educational analysis. Trade safe and wait for confirmation before taking action, especially after such an extreme move!
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