“Who is secretly bottom fishing after breaking 0.18? Behind CFX's 12% flash crash, the market maker may be setting a 'bull trap'!”

【Quick Overview】

When the market collectively panics and sells off, CFX just happened to hit the lower Bollinger Band and the lower edge of the two-year value zone around 0.177, with a massive amount of short positions being closed and spot buy orders surging simultaneously—this is not the end, but rather the 'last feast for the bears'.

【Key Ranges and Volume Distribution】

1. Value Anchoring Zone (POC): 0.2116 (1.38 billion volume), the largest turnover area in the past two weeks, with heavy resistance above.

2. High Volume Node (HVN): 0.2035–0.2198 forms a five-layer thick wall, and once the price rebounds to this range, it is likely to meet resistance.

3. Low Volume Node (LVN): 0.1667–0.1762 is a 'vacuum zone', and a breakdown will accelerate; a retest upwards is seen as the best position for short covering.

4. 70% Volume Coverage Zone: 0.1831–0.2334, the current price has fallen below the lower edge, technically entering the 'oversold' zone.

5. Momentum Verification: LVN Down Volume 100%, HVN Up Volume 55–58%, short positions still dominate in the short term; however, RSI 36 resonates with the lower Bollinger Band, increasing the probability of a short-term rebound.

【Market Cycle】

At the end of a mid-term downtrend channel, short-term is in the 'panic sell-off tail phase', and mid-term is still in the late bear market phase.

【Trading Strategy】

• Aggressive: Buy small positions at the current price 0.177–0.180 for a rebound, stop loss at 0.172 (LVN outer edge + 0.5×ATR), target 0.195 (most recent HVN), risk-reward ratio 2.8:1.

• Moderate: Wait for a retest at 0.183–0.185 VAL and Up Volume >60% to enter, stop loss at 0.179, target 0.205, risk-reward ratio 2.3:1.

• Conservative: If volume breaks below 0.172, go short, stop loss at 0.177, target 0.158 (next LVN), risk-reward ratio 2.5:1.

Risk Warning: If the 4-hour closing price returns above 0.19 and open interest rebounds, the short strategy becomes immediately invalid.

【LP Market Making Suggestions】

It is recommended to do narrow grid LP in the range of 0.172–0.195:

• Lower edge 0.172 serves as LVN support, upper edge 0.195 serves as the first HVN resistance;

• This range accounts for 38% of the past 2 weeks' volume, with moderate volatility and transaction fee returns > high probability of impermanent loss.

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