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🚀MAGIC Surge Warning: The middle band of the Bollinger Bands has established support, and there may be a 20% breakout during the day!
Summary
MAGIC current price is $0.2387, with a 24-hour increase of 17.76% but with shrinking volume (trading volume ratio 0.45), and the technical aspect shows overbought correction pressure. It is recommended to lightly enter a long position near the middle band at 0.236, with a target of 0.296 (upper band), stop loss at 0.176 (lower band), and a risk-reward ratio of 2.5:1. Caution is advised for the risk of short squeezes due to negative funding rates (-1.08%) and the market liquidity risk from a sudden drop of 55.63% in open interest.
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Technical Analysis
1. Price Status: • Bollinger Bands: Price is above the middle band at 0.236 (51.9% percentile), breaking through the middle band may trigger a mean reversion to the upper band at 0.297. • MA200 Deviation: Current price is 127.31% above the 1-hour MA200, indicating severe long-term overbought conditions that require correction. • Holding Cost Deviation: Current price deviates by 90.19% from the average holding cost of 0.1255, accumulating profit-taking pressure risk.
2. Market Strength: • Volume-Price Divergence: 24-hour price increased by 17.76% but trading volume shrank by 55%, indicating insufficient upward momentum. • Open Interest Anomaly: Open interest dropped by 10.78% over 4 hours alongside a price drop of 7.73%, showing the withdrawal of major funds. • Long-Short Reversal: The perpetual contract long-short ratio dropped sharply from 1.18 to 1.08, indicating smart money is shifting to defense.
3. Key Levels: • Support at 0.176: The lower band of the Bollinger Bands and a dense area of spot trading (16.41% historical trading volume). • Resistance at 0.297: The upper band of the Bollinger Bands and the strong resistance area from $0.331 to $0.419.
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Market Cycle Analysis
Currently in a mid-term correction phase of a bull market, after a 7-day price increase of 223.58%, a technical correction has begun, with a significant increase in contract open interest by 384.24% indicating leveraged funds are still in play.
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Trading Strategy
1. Entry Point: 0.236 (Bollinger Bands middle band support) 2. Stop Loss Point: 0.176 (breaking below the lower band indicates a trend reversal) 3. Target Level: 0.296 (upper band resistance) 4. Risk-Reward Ratio: According to the long formula (0.296-0.236)/(0.236-0.176)=1.0, can actually reach 2.5:1 (dynamic trailing stop profit)
Risk Warning: Continuous negative funding rates may trigger a short squeeze, with a risk of large whale chips loosening due to a net inflow of 123 million USDT over 5 days. It is recommended to keep position ≤3%, and to immediately move the stop loss to the cost price upon breaking 0.25.
Like and follow for real-time updates, feel free to leave comments to discuss strategy details! $MAGIC
This week's first move: Shorting $MAGIC Suggested stop-loss price: 0.262 or 0.272 Opening basis: Three consecutive days of significant gains reaching a peak BTC trend: High position retracement
In three days, it has increased by more than three times! The first and second days both had gains exceeding 70%, and today the gains have narrowed. After continuous fluctuations on the 4-hour chart, there was a sudden significant surge upwards, marking the last explosion of the short sellers; once they are exhausted, the market makers will become the biggest bears. Two hours ago, after collecting 3% in funding fees, the market makers started to reel in their nets! It is expected that there will be a significant drop by tomorrow morning. Short immediately, no need to hesitate. Current price 0.237