๐ Market Overview
Bounce (AUCTION) has seen significant price action recently, surging from $49 to a high of $64.3 before retracing to $58. This sharp increase has led to high negative funding rates, suggesting an overwhelming number of traders are shorting the asset.
However, such extreme short positioning raises concerns about a potential short squeeze, where forced liquidations could drive the price even higher.
๐ Key Technical Indicators
๐ธ Support Levels: $55 - $56
๐ธ Resistance Levels: $64 - $65
๐ธ Funding Rate: Extremely negative (shorts are paying longs)
๐ธ RSI: Previously overbought (>70), now stabilizing
๐ Short Position Concerns
Traders holding short positions from $49 (including myself) are facing increasing losses, as funding fees are very high and eating into profitability. If the market structure remains bullish, there is a high chance of:
โ Short squeezes pushing the price past $64
โ More forced liquidations, fueling further upside
๐ Trading Strategy โ Hedging with a Long?
Given the current market sentiment, a partial hedge using a long position could be beneficial to balance short exposure. Hereโs the plan:
โ
Open a small long position to hedge losses from the short.
โ
Place a stop-loss below $55 in case of breakdown.
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If price reaches $64-$65, reassess whether to close both trades or let the long ride.
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โ ๏ธ Risk Management & Final Thoughts
If AUCTION fails to break $64, a short opportunity may open up again.
If it breaks above $65, the rally could continue, making longs more profitable.
Monitoring funding rates is keyโif they start normalizing, the bullish momentum may slow down.
๐ Stay alert for rapid price movements and trade wisely!
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#CryptoTrading #AUCTION #Binance #ShortSqueeze #BounceToken
