$ARB liquidation heat map shows a significant accumulation of long liquidations below the current price, which is clearly imbalanced compared to the short liquidations above. This indicates:
Long liquidation area below: If the price drops towards these areas, it may trigger a chain liquidation, accelerating the decline and forming a 'price magnet' effect.
Fewer short liquidations: The resistance above is lighter, and if it breaks through critical resistance (such as $0.3785), there may be significant upside potential.
Volatility risk: High volatility near the long liquidation area, strict stop-loss is required.
Market background: $ARB is down 88% from its all-time high, and 92 million tokens are about to be unlocked, which may exacerbate selling pressure.
Trading advice:
Short-term: If it drops into the liquidation area, consider reversing or shorting, and be cautious of large players controlling the market.
Long-term: Wait for a breakout above $0.3785 and confirm increased trading volume before considering going long.
Risk control: Set stop-loss outside the liquidation area, and control positions to prevent drastic fluctuations.
What do you think of this wave of $ARB price action? Do you have any specific trading plans? #ARB #CryptoTrading