$CAP Bounced 13% After a 41% Drop in a Week. Dip or Trap?
CAP (Cap, an Ethereum credit protocol with the cUSD stablecoin) is near $0.078. It fell from $0.1168 to $0.0686 in a week, then bounced. Volume is dropping and most of the trading is in futures. Before you chase it, here's the full picture.
Support: $0.0698, then $0.0686
Resistance: $0.0793, then $0.085 and $0.100
Bull: breaks $0.0793-$0.085 on volume, then $0.100, $0.1168 and the $0.1208 high.
Base: ranges between $0.069 and $0.080.
Bear: loses $0.0686 and falls to $0.060, then $0.045.
TRADE IDEA
Don't chase the green candle. Wait for a pullback.
Entry: $0.0700-$0.0740
Stop: 4h close below $0.0660
Target: $0.085, then $0.100
Risk/reward: about 2.2:1 to the first target
Keep size small.
RISKS
• Only about 16% of the 10B supply is circulating, so the fully diluted value is about 6x the market cap
• Futures volume is about 46x spot volume, so liquidation wicks are likely
• Volume fell about 68% in a day, and TVL is falling
• Still about 35% below its all-time high
MY TAKE
Real credit protocol with a Robinhood Chain tie-in, but the chart is a post-crash bounce on thin spot volume. Buy the dip, don't chase the green candle. Patience beats FOMO.
Would you buy the dip or stay out?
Not financial advice. DYOR.
#tradingSignals
