This round of $CHZ dumping is really hurting the batch of people who chased orders. After that first surge, many thought it would keep pulling up, but once price got capped overhead, it kept driving the price from short positions around 0.03382 all the way down to 0.01701. Now the unrealized position PnL is +2395.08%, and the trend extension is clearly visible.

The key here isn’t that I’m saying “short” only after the drop—it's that there was already a problem when price had been range-bound at the highs. The order book repeatedly tested the area above, yet it never achieved a real, effective breakout. Instead, the critical levels began to loosen, and I’d rather stand with the bears in this kind of structure.

Now that the downside room has been released, brothers with large positions shouldn’t get greedy and lose judgment. You can take partial profits in batches using an 80/20 split, keep part of the position to see whether the selloff continues, and make sure your protection level follows through. The most dangerous thing for winning trades is for them to end up becoming emotional trades.

For CHZ next, I’m watching the quality of any rebound. As long as the rebound is weak and the overhead suppression is still there, there’s no rush to flip directions. If you didn’t get in, don’t chase the downside, and don’t chase orders—there aren’t a lack of opportunities in the market. Just wait for the next time a definite signal appears.

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