$ON 💥 Double Alert: 4.3% Drop & 8.0x Volume on
$ON - The extreme volume spike and rapid decline suggest distribution or aggressive exit, likely driven by smart money, not just retail panic. Usually, after such a dump and volume anomaly, price may attempt a relief bounce to retest broken support as resistance, but the overall trend remains bearish unless a significant reversal pattern appears.
- I expect price to attempt a weak bounce toward 0.07955–0.08175, but unless there’s strong bullish reversal (like a clear double bottom with bullish divergence and heavy buying), this will likely fail and resolve lower.
- Trade setup: If price retraces to 0.08143–0.08175 and shows a clear rejection (bearish candle, failed breakout, or reversal on 1m/5m), consider an entry for a short position. Target 0.07800, 0.07680, and 0.07520 as take-profit areas, trailing further if momentum accelerates. Place stop-loss above the swing high from the bounce.
- If price instead grinds lower immediately and breaks below 0.07779/0.07680 without a bounce, this could be a sign of true capitulation — only consider shorting on a failed bounce, not by chasing new lows.
- My bias would only shift bullish if price quickly reclaims and holds above 0.08484 and starts forming higher lows with strong volume and a bullish engulf on 15m.
📝 This is not investment advice, but an educational analysis. Please use this as a reference for your own research and risk management!
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