$XRP When do you want to enter short? When do you want to long? Check my notes below ⚠️⚠️⚠️
This heatmap shows the areas of high liquidation: bright yellow means many positions can be liquidated there.
Usually, prices are "attracted" to areas of high liquidation (magnet effect).
Important levels in this image: ⚠️
Many liquidations around 2.20–2.22 USDT (bottom)
Also a lot around 2.34–2.36 USDT (top).
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Entry Strategy based on this:
If you want to Buy (Long): 🟢
Ideally when the price is near support (the lower area with a lot of liquidations, e.g., 2.2x). Wait for the price to drop near 2.22 and then look for confirmation of a reversal (e.g., a small bullish candlestick pattern in a smaller timeframe).
If you want to Sell (Short): 🔻
If the price rises to the upper liquidation area (around 2.34–2.36), you can look for short opportunities after there are signs of rejection.
Risk management is very important. It is recommended to use a stop loss above the resistance area (if short) or below support (if long) with a minimum risk-reward ratio of 1:2. For example, if the profit target is 10%, a stop loss of only 5% is sufficient.
Additional Tips: 🖊️
Also use RSI: if RSI is oversold near support, it strengthens the long signal. If RSI is overbought near resistance, the short signal is stronger.
Observe volume: large volume near important levels usually indicates potential price reversal.
Do not enter during extreme volatility without a plan — it is better to wait patiently for the price to reach strategic areas.
Important notes:
Do not rely solely on the heatmap. Also confirm with candlestick patterns, RSI, or other indicators for more validity.
Always use stop loss due to high volatility.
