Sharp drop or bounce trap? Let’s decode the 8H chart!
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⚠️ Current Snapshot
Current Price: $2.9696
Short-Term Trend: Bearish
Volume: Drying up
Sentiment: Weak buyer momentum
LAYER has lost its footing at a critical 8-hour support zone. The price action is screaming caution as buyers continue to step back.
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📉 Key Technical Breakdown
1. Support Breached
The token broke below a major support area, flipping the market structure bearish.
2. Lower Highs, Lower Lows
A classic downtrend pattern is unfolding—momentum favors the sellers.
3. Bearish Candlestick Structure
Recent candles show long upper wicks and weak closes — a sign of distribution.
4. Indicators Flash Red
RSI: Trending below 50, showing weakness
MACD: Bearish crossover and widening gap
Moving Averages: Price stuck below 20 EMA and 50 EMA
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🔍 Watch These Levels Closely
Immediate Resistance: ~$3.10
Short-Term Support: ~$2.85
Breakdown Target: If $2.85 breaks, $2.60–$2.50 zone could be next
This range could be a potential liquidity trap. Wait for confirmations before entering trades.
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💡 Strategic Takeaways
Traders: Ideal for short setups or bounce scalps. Avoid long entries until structure flips.
Investors: Not a good spot to accumulate. Watch how price behaves near $2.85 and below.
Cautious Entry: Only consider longs if price reclaims $3.10 with volume.
Risk Control: Always use stop-losses, especially in breakdown zones like this.
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⚠️ Final Thoughts
LAYER is in a high-risk zone. Don’t let the low price tempt you—momentum remains in the bears’ favor. The safer play is to wait for a stronger reversal signal or dip into a clearly defined demand area.
Stay sharp, stay disciplined!
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Disclaimer: This content is for informational purposes only and does not constitute financial advice. Always do your own research (DYOR) and manage your risks accordingly.
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