don’t short just because support breaks. Look for volume confirmation and recovery candle close. Liquidity grabs are common in volatile coins like DOGE.
1. Support Zone Reaction:
The purple zone acted as a clear support multiple times throughout the day.
Price broke below the support, which initially signaled bearish continuation — BUT…
2. Fake Breakdown (Bear Trap):
The quick rejection of lower prices (noted with a long wick + recovery candle) shows strong demand below support.
This is a textbook liquidity grab or stop-loss hunt — institutions or big players push price below known levels to trigger stop-losses from retail traders.
3. Volume Confirmation:
A sudden spike in volume (circled area) occurs as soon as price reclaims the broken support.
This is important — high volume on recovery after a breakdown signals absorption of selling pressure and start of buyer dominance.
4. Bullish Reversal Signal:
Strong bullish candle closes above the breakdown zone, confirming the fakeout.
This often leads to a rapid upside move, as trapped shorts start closing positions (adding buy pressure).
5. Short-Term Projection:
If price sustains above the 0.1545–0.1550 level, next possible resistance is near 0.1570–0.1580.
Break above that level can shift momentum to a bullish short-term trend.
Key Trading Concepts Applied:
Fake Breakdown (Spring) — Wyckoff concept
Volume Spike at Key Level — confirmation tool
Liquidity Zone Analysis
Risk-Reward Boost — great R:R setup after a fakeout