Current Situation
$POLYX triggered a short liquidation at $0.0580** for $4.3325K, indicating a short squeeze on leveraged short positions, which may drive a technical rebound in prices.
Current Price: $0.0578 – $0.0585 range
Entry Area: $0.0588 – $0.0595 (if the price rebounds to this area and shows signs of stagnation or bearish structure)
Target Levels:
· TP1: $0.0565
· TP2: $0.0555
· TP3: $0.0545
**Stop Loss Location:** $0.0608
Logical Analysis
The current short liquidation power is moderate, temporarily absorbing local selling liquidity, which may trigger a price rebound towards the resistance area near $0.0590**. However, if the price cannot effectively stabilize above this resistance area and forms a bearish reversal signal in the $0.0590–$0.0600 range (such as a long upper shadow, volume-price divergence, or weakening momentum indicators), the price is likely to return to its original downward trend, at which point it can be seen as a good opportunity to short on rallies.
