A pullback like this is actually healthy. After a sharp move, the market needs to cool off, clear late longs, and rebalance liquidity. These corrections reset momentum and often create cleaner structures to trade from, instead of chasing extended price action.

$DOLO Short Liquidation: $1.2281K at $0.03552

Right now, I’m watching how price behaves around this zone because it’s not random. This area previously acted as a solid support before price expanded upward, and now it’s being revisited. That tells me the market is checking whether buyers are still present. They’re building strength here, not distributing, which is exactly what I want to see during a healthy correction.

From a technical perspective, this level lines up with a key retracement of the last impulse move and a clear reaction area where volume previously stepped in. Every time price came into this range before, it triggered a bounce. If this level holds again, it increases the probability of a continuation move and fuels short liquidations above.

Trade Setup

Entry Zone: $0.03480 – $0.03560

Target 1: $0.03740

Target 2: $0.03920

Stop Loss: $0.03390

I’m watching how price reacts inside the entry zone. If buyers continue to defend it and structure remains intact, this setup stays valid. Short positions are stacked above, and if this level holds, any push upward can accelerate quickly as shorts are forced to exit.