SHORT signal PNUTUSDT by Max Profit

26 nov

1h TF. On the PNUTUSDT chart, a cascade of liquidity levels has formed below the current price, where participants' stop-losses are likely placed. These levels can act as fuel for a downward impulse. At the extremes, there is a noticeable increase in seller volume, which further confirms the weakness of buyers.

A local false breakout above the range was observed, signaling insufficient buyer strength to sustain a breakout of key levels. The ongoing seller pressure increases the likelihood of a downward price move.

🔑 Technical Context

• A liquidity cascade below the current price forms the foundation for a potential downward impulse.
  
• Increased selling volume at price extremes reinforces the bearish scenario.
  
• A false breakout of the upper range boundary highlights buyer weakness and confirms the bearish market sentiment.
  

🚩 Execution Strategy

*Wait for the price to compress towards the nearest liquidity level.
*On the 5-minute timeframe, look for the formation of a local consolidation zone.
*Enter the trade at the moment of the support level breakout.
*Place the stop-loss above the local consolidation zone to minimize risks.

📈 Recommendations

• Entry Timing: Use the 5-minute timeframe to accurately identify the breakout moment.
  
• Risk Management: Set stop-losses based on the local consolidation zone to minimize potential losses.
  
• Volume Analysis: Monitor further increases in selling volume at key levels to confirm the downward impulse.
  

Conclusion
At this stage, PNUTUSDT shows strong potential for downward movement. Implementing a strategy based on liquidity cascade breakouts and intensifying seller pressure allows for effective use of the current market conditions.