#RAVE

Is RAVE currently suitable for shorting?

Price at 1.937 USDT, 7-day increase +672%, still at a high level—straight to the point: now is not the right time to short, the risk is extremely high.

Three core issues

1. The whales haven't exited the market yet. On-chain evidence: the project’s related addresses transferred in 18.58 million RAVE before the surge started, cashing out about 19 million USD. But such manipulation usually isn’t a one-time dump; there may be subsequent pump-and-dump actions to trap short sellers. Shorting now is essentially guessing when the whales will leave, with very low odds of success.

2. Contract open interest is still expanding at a high level. Open interest surged by +48% within 24 hours, indicating fierce two-way battles. In this state, shorting risks being forcibly pushed higher by the bulls, triggering a short squeeze—community feedback shows that on the RAVE contract, triggers only reduce positions for risk control, with losses exceeding $15k at worst.

3. Daily volatility at 93%, price spikes are normal. Even if your directional judgment is correct, setting a slightly wider stop-loss in this volatility can lead to large losses, while setting it too tight can be easily swept out by price spikes, making entry and exit very costly.

Under what circumstances can shorting be considered?

When the project’s large-scale fund transfers are completed? Not yet clear. At least wait until a top pattern appears, such as volume stagnation followed by a rebound with decreasing volume, then combine with strict stop-losses—that’s a relatively reasonable shorting window. Currently, most people are waiting to see when the whales will retreat, rather than actively shorting.

GATE AI is really useful!