Red Alert: $RED Faces Long Liquidation at $0.4076 – Time to Load or Leave?
A massive $1.1693K long liquidation just hit $RED at $0.4076, shaking out weak hands and possibly setting the stage for a strong reversal. This could either be the final flush before a bounce or the beginning of deeper downside. Here's a full breakdown of the current battlefield:
Analysis Zone (Accumulation/Watch Zone):
$0.3920 – $0.4080
This is the key demand zone where buyers are likely to step in again. Price is hovering near support after the liquidation wick. Keep your eyes on volume and candle closes in this range.
Buy Zone:
$0.3950 – $0.4050
A controlled re-entry after liquidation with tight risk is ideal here. Smart money often reclaims after such liquidations.
Short-Term Target:
Target 1: $0.4280 (first resistance, likely to see some profit-taking)
Target 2: $0.4510 (major resistance if volume follows through)
Target 3: $0.4750 (stretch target if breakout confirms)
Stop Loss:
Below $0.3890
Any strong breakdown under $0.3890 invalidates this setup and suggests continuation of the downtrend.
Conclusion:
The recent long liquidation at $0.4076 could mark a reversal point if accumulation continues. Momentum traders should wait for confirmation above $0.4150. Swing traders can consider entries within the buy zone with a tight stop.
Patience and precision are key here. Liquidity hunts create opportunities — only for those who plan ahead.