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COMMON's performance today is quite interesting, with both the short-term and hourly charts showing a death cross, and the moving average system has turned weak across the board. More critically, the 1-hour RSI has already fallen to around 30, which technically has reached the edge of the Oversold area. Selling pressure is clearly dominant; will this situation continue to accelerate downward?
Looking at the market data, the buy-sell ratio is only 0.86, indicating that the buying power is indeed weak. Interestingly, the leverage long-short ratio has reached 2.49, and bullish sentiment is quite high, but large holders' positions are also leaning towards the long side. In this situation where bulls are clustered together, if the price continues to fall, it may trigger a chain liquidation. Although the funding rate is positive, the value is very low, indicating that bullish confidence is actually not strong. The active buy-sell volume is almost zero, and the market's wait-and-see sentiment is quite strong.
From a risk-reward perspective, going short on COMMON may be an opportunity right now. The target price can be set in the range of 0.010021-0.010029, corresponding to a profit margin of about 1.2%-1.3%. However, that being said, the oversold area may experience a technical rebound at any time, so be sure to set a stop-loss level and don't take too heavy a position. With such large market fluctuations, controlling risk is always the top priority.