The said bearish pressure is further compounded by the dominance of shorts over the market, which recent liquidation data uncovered in the past two days. When a much higher quantity of short liquidations compared to longs appears, this seems to draw a picture of a lack of confidence in the price rally for the short term
From a technical perspective, in price action, traders were watching key levels. At $0.0000107, it was strongly supported by the 78.6% Fibonacci retracement level, which kept the price from dropping further. The resistance level at the 50% retracement level at $0.000013 proved strong, providing a massive barrier to upside movement.
The Liquidation Heatmap suggests that should selling pressure increase, large pools of liquidity may start to rest in the $0.000008–$0.000009 area which might attract the price down there. If the bulls take control of the present impulse of buyers, the next target about liquidity is around the $0.000018 level. Locally, liquidity areas around $0.0000122 and $0.0000134 might also show price bounces in tries to squeeze short positions.
Recent Market Movements and Investor Activity
Despite the bearish trend, there have been moments of positive market activity. Notably, overnight, a $300 million absorption at a crucial support level has sparked some optimism among investors. Additionally, a social media post by featuring a frog meme contributed to a temporary price rebound.
