【$OP Signal】Hold off on opening positions, wait for valid reversal signals in a downtrend

$OP continues to decline below EMA20 (0.1830), with price action showing weak consolidation after a non-resistive decline. The 4H buy volume is weak (Buy/Sell Ratio 0.49-0.52), and the depth imbalance (5.09%) indicates sell order accumulation, with large orders flowing as Taker Selling. Open interest remains stable while price declines, suggesting not a short squeeze, but rather that bulls are weak or main players are slowly distributing.

🎯 Direction: Hold off

The current market lacks a clear bullish or bearish structure. Price is below all key EMAs, indicating a clear downtrend. However, RSI (42.01) has exited the oversold zone and there is no panic selling volume, making direct shorting risk-reward unfavorable. Conditions for going long are even less met: no key support confirmed, no signs of buy absorption, and price has not broken above EMA20.

The best strategy is to stay on the sidelines, waiting for two signals: 1. Price rebounds to EMA20 (0.1830) or nearby resistance (around 0.186) with signs of stagnation + declining open interest, forming a high-probability shorting opportunity. 2. Price shows a clear volume spike with a Pin Bar or engulfing bullish candle at low levels (e.g., 0.174-0.176), with a significant rebound in buy volume ratio, indicating a potential reversal to go long. Until then, the key risk management principle is patience.

Trade here 👇 $OP

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