$KERNEL Faces Heavy Long Liquidation – Is a Reversal Brewing or More Pain Ahead?
A sudden long liquidation worth $1,867 at the price level of $0.1922 has just shaken up $KERNEL , sending a wave of panic through leveraged bulls. But beneath the chaos lies a potential opportunity – if you know where to look.
Technical Analysis:
Current Price Reaction Zone:
The liquidation zone around $0.1922 suggests a strong resistance where leveraged positions collapsed. However, this can also act as a bounce zone if buyers regain control.
Buy Zone (Accumulation Area):
$0.1830 – $0.1880
This range aligns with prior consolidation and volume support. A potential reversal could start from this area if selling pressure weakens.
Targets:
Target 1: $0.1985 – First challenge zone near the liquidation level
Target 2: $0.2080 – Historical resistance and key breakout point
Target 3: $0.2185 – Momentum continuation zone if volume picks up
Stop Loss:
$0.1790
A clear break below this level invalidates the bounce thesis and could signal further downside.
Conclusion:
The recent long liquidation is a double-edged sword – it flushed out weak hands, but it may also set the stage for a sharp reversal. Smart traders watch these zones like hawks. If $KERNEL holds the buy zone, a rally toward $0.2080 and beyond is on the table. Patience and precision are key now.