$RESOLV Longs Wrecked – Is a Reversal Brewing?
A sharp long liquidation of $7.85K at $0.2440 signals panic in the leveraged market. Weak hands are out. The question is – is this the calm before a storm or the start of a bigger drop?
After this liquidation, smart money may be eyeing entries. Here's a clean and strategic plan based on support zones and market structure:
Buy Zone:
$0.2260 – $0.2380
This is the range where demand previously stepped in, and price may stabilize here. Watch for accumulation signs like sideways price action with decreasing volume.
Entry Confirmation:
Wait for a reclaim of $0.2400 with strong volume to avoid catching a falling knife.
Targets:
First Target: $0.2670 – previous short-term resistance
Second Target: $0.2880 – psychological resistance and prior liquidation zone
Third Target: $0.3120 – momentum breakout zone if buyers flood in
Stop Loss:
$0.2190
A break and close below this level would invalidate the setup and could invite further downside pressure.
Technical Outlook:
Volume spiked on liquidation – this could be a trap for late shorts
RSI nearing oversold territory
If bulls reclaim control above $0.2440, expect a sharp bounce as shorts get squeezed
Conclusion:
$RESOLV just went through a storm. The dust is settling. If it holds the key buy zone and breaks back above $0.2440, we might witness a fierce rally. Risk management is key, but the reward here is tempting.
Let the chart speak and the market decide.