$OP Major Long Liquidation Sparks Opportunity: What's Next After $6.5K Wipeout at $0.651?
A sharp long liquidation of $6,507.8 at the $0.651 level on $OP has just shaken weak hands out of the market. This sudden move has opened up a crucial window of opportunity for smart traders who are watching the price dynamics closely.
What Just Happened?
A long squeeze at $0.651 has triggered cascading liquidations, forcing overleveraged positions out. But beneath the chaos lies potential. Historically, such shakeouts often mark the beginning of a trend reversal—especially when volume spikes and liquidity pools are taken out aggressively.
Technical Analysis:
Support Zone (Buy Zone): $0.630 to $0.645
This is a high-probability accumulation zone where institutional players might step in. Price has reacted strongly from here in the past, and the recent liquidation flush could be the final dip before recovery.
Resistance Zone: $0.685 to $0.710
Watch for possible rejection or consolidation in this range. A clean break above this will confirm strength.
Target 1: $0.680
A realistic, near-term bounce target once buying pressure returns.
Target 2: $0.715
Breakout potential if bullish volume confirms above resistance.
Extended Target: $0.758
Medium-term upside if the market sustains momentum and breaks key resistance levels.
Stop-Loss Strategy:
Place a stop loss slightly below the lower edge of the buy zone, around $0.618, to protect against any further breakdown. This level also marks the invalidation of bullish structure in the short term.
Conclusion:
This liquidation event could be a classic trap for impatient bulls, flushing weak longs before a possible trend reversal. If volume supports the bounce from $0.63–$0.645, we might be gearing up for a powerful rebound. Stay disciplined and follow the levels—opportunity lies in the chaos.
