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Good news for those shorting $GTC , more gains ahead
This afternoon, Professor led fans into GTC, which has now successfully dropped below 0.14 according to its development trajectory, with gains nearly doubled. Currently, we're watching to see if it can break below 0.135 before 9 o'clock; if it does, you can continue shorting. If not, you can take profits by closing or lock in half for safety. The reasons for the drop are summarized as follows:
1. After the short squeeze ends, profit-taking surges
Yesterday’s 61% rally was essentially a “short squeeze” in a small-cap market — shorts were forced to buy back, pushing the price higher.
But GTC’s market cap is only $14.56 million, and today’s trading volume has decreased significantly compared to yesterday. Once the short squeeze energy is released, short-term traders start taking profits, leading to a natural pullback.
2. Funding rate normalization weakens short squeeze momentum
Yesterday’s extreme negative funding rate was the powder keg for the squeeze; today, the rate should have recovered quite a bit. Without shorts continuously “paying rent,” the upward momentum weakens.
3. Liquidity issues with small coins
GTC, as a small-cap governance token, doesn’t require much money to pump or dump.
Markets wait for no one, trust will not be betrayed! Follow Professor He, join me in the trade, I’ve been closely monitoring the market for the upcoming layout. Friends who keep up with the rhythm, stay steady and secure. Let’s keep growing the snowball of profits, making the fluctuations in account numbers the best response to every bit of trust!
#Gate广场五月交易分享