- Tellor traders could see a rise to $150 or $180.
- The market structure was bearish on the H12 chart.
Counter [TRB] rose to $629 on December 31 and fell to $121 just eight hours later. According to Mint glass data for that day, the TRB contract saw the largest number of contracts wiped out. The momentum has been bearish since then.
AMBCrypto reported that the Tellor team plunged TRB shortly before prices soared. This meant that the team was likely involved in dumping the tokens. How do traders navigate these dangerous waters?
Both long and short positions can involve large amounts of risk when entering into positions here
Source: TRB/USDT on TradingView
At the time of writing, TRB was trading at $134. To the north, $143.9 and $185 were high stretches of resistance. The $185 zone in particular was a major obstacle for TRB bulls in the second half of December.
Technical analysis of the lower timeframe price charts showed that the $150-$155 zone fended off the bulls on January 5. So it’s possible that short sellers could wait for another upswing in this area before going short.
Alternatively, they can wait for a move to the $177-$190 region (red box) before selling. This would be a higher probability trade given the importance of the $180 region in the past. Yet such a revival might not materialize.
The RSI was below the neutral 50, underscoring the solid bearish momentum. The OBV also fell dramatically and buying pressure was minimal. The Open Interest behind TRB contracts fell on January 6, reflecting the fearful sentiment.
The liquidation heatmap matched the technical analysis
Source: Hyblok
AMBCrypto noted that TRB’s Hyblock liquidation heatmap showed a noticeable number of liquidations at $195 and $235. The $150 area did not see a significant number of estimated liquidation levels.
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As liquidity picks up prices, we could see a rise towards $200. The importance of the $180 area has already been highlighted.
The confluence of the heatmaps meant that swing traders could wait for a move into the $180-$200 area. They can estimate the lower timeframes for a peak in selling pressure and take short positions when warranted.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
