This move is a typical case of luring buyers at the top and then dropping back. $LAB looked like it might still try to break higher at the beginning, but it kept getting more and more unstable. I’ve held the short since then, and the outcome is already very clear.

At the time, what I was watching was the resistance around 4.25647. The price tried to push up multiple times and got knocked back. On the surface it looked like a sideways range, but in reality it was draining the people chasing longs. What really caught my attention was that the rebounds kept getting shorter, and the sell-offs got faster. Something was already off here.

Now the market is at 0.68032, and the short position is up +1654.39%, with room for volatility opening up. Put simply, in this kind of market, it’s not about who shouts louder and wins—it’s about who can see the risk while others are excited, and who can hold back while others are panicking.

If you have a position, don’t get greedy and try to eat it all in one bite. The 80/20 approach of handling it in batches is steadier: protect your profits first, and then manage the rest by trailing with your protective levels. If the rebound is too strong, don’t stubbornly hold on—if the rhythm is wrong, withdraw first.

If you haven’t gotten in, don’t chase—especially after this kind of sharp drop, where you’re likely to get whipsawed back and forth. Wait for the next more comfortable entry level.

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