Short Thesis on REEFUSDT: Potential Bearish Setup

9 oct.

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.