Short Thesis on REEFUSDT: Potential Bearish Setup
I’m currently eyeing a potential short opportunity on REEFUSDT. There are several key factors indicating a possible dump in the near future:
Price and Volume Divergence: While the price has been holding near resistance, there’s a clear divergence between price action and volume. Buying power has significantly reduced, which suggests that the bullish momentum is weakening.
RSI Divergence: The Relative Strength Index (RSI) has formed a bearish divergence, signaling that despite price moves, the underlying strength is diminishing. This often indicates a potential reversal.
OBV Divergence: On-Balance Volume (OBV) is also diverging, further supporting the bearish case. OBV, a volume-based indicator, shows that despite higher prices, there’s less volume supporting the move, suggesting potential exhaustion in buying pressure.
Risk/Reward Setup: The risk/reward ratio is favorable, with a well-defined stop-loss placed just above the recent highs and a potential target significantly lower, which aligns with the technical breakdown setup.
Given these factors, there’s a high probability of a price dump. I’ll be looking to enter a short position with the expectation that the price will move toward the lower support zones.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.