After a 48% surge in a single day, $POWER has formed a clear supply zone around 0.40, and the price is cooling off. The RSI is as high as 81.9, indicating severe overbought conditions, and a bearish divergence has appeared on the 4H timeframe with new price highs but RSI not making new highs.



🎯Direction: Short

🎯Entry: 0.380 - 0.395

🛑Stop Loss: 0.405 ( Rigid stop loss, invalidating the breakout above the previous high )

🚀Target 1: 0.345

🚀Target 2: 0.320

Hardcore logic: This is not a healthy trend continuation. 1) Funding rate is as high as +0.057%, indicating extremely crowded long leverage, creating conditions for a short squeeze or main force distribution. 2) Open interest (OI) stabilized after the surge, with no signs of continuous inflow, indicating weak new buying. 3) Depth imbalance shows significant sell orders (Asks) accumulating above 0.3763 (3442 contracts), forming a short-term resistance wall. 4) The price has deviated significantly from the EMA20 (0.2812), indicating a need for mean reversion. Overall, this is a typical "bullish exhaustion" structure, with high fees + bearish divergence + supply zone, making it a high-probability shorting opportunity.
POWER31,93%
View Original
post-image
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)