FUN plummets 10%! Is this a buying opportunity or a trap? Experts reveal key support levels
Current FUN price has dropped by 10.6%, with trading volume shrinking to 34.7% of the historical average. Funds continue to flow out, but buying pressure is relatively high (buy/sell ratio 1.99x). It is recommended to short in the short term, entry at 0.0132, stop loss at 0.0135, target at 0.0120, risk-reward ratio 4.5:1. Risk: insufficient liquidity, accumulation of sell orders at close range. If the support at 0.0128 is broken, stop loss is needed.
Technical Analysis
Price Status: Bollinger Band position 21.38% (above the middle band), indicating overbought retracement pressure; MA200 deviation 20.44%, holding cost deviation 16.48%, both above the average, indicating inflated prices. Market Strength: trading volume is sluggish, price decline accompanied by net outflow of contracts (-11.16m/15m), open interest decreased by 2.74% in 24 hours, long-short ratio increased to 0.9550 (more longs), but no significant news catalyst. Key support at 0.012800 (Bollinger lower band), resistance at 0.014792 (Bollinger upper band); liquidity trap at 0.026 (sell orders 295k USDT), with many nearby sell orders (-13.28k difference), which could trigger a sharp drop.
Market Cycle Analysis
In the mid-term pullback phase of a bull market, after a 32.7% increase over 7 days, profit-taking is occurring, and the short-term trend is slightly bearish.
Trading Strategy
• Entry point: 0.013226 (current price, overbought rebound level)
• Stop loss point: 0.013500 (above the Bollinger middle band)
• Target point: 0.012000 (below holding cost, technical support)
• Risk-reward ratio: 4.48 (calculated for short direction)
Risk Warning: Market risks include liquidity gaps and negative funding rates; strategy failure condition is if the price breaks 0.0140; position size ≤ 2%, avoid trading during low liquidity periods.
Like and follow for real-time updates, feel free to leave comments to discuss strategy details!