$FOLKS : Relief Bounce or Consolidation Before the Next Move?
$FOLKS is currently in a very interesting spot. After a massive correction from its recent highs, the price is starting to show signs of life around the $3.80 - $4.00 zone. While the overall trend has been heavy, the aggressive selling seems to be exhausting, paving the way for a potential relief rally.
Market Intel & Volume Check
The Grind:
We’ve seen a significant drop, but the volume is now beginning to stabilize. This "quieting down" usually happens when sellers are running out of steam and buyers start stepping in to build a floor.
Capital Flow:
Smart money often looks for these "oversold" conditions to accumulate. With strong backing from major VCs and upcoming ecosystem upgrades, the long-term fundamentals are acting as a safety net for the current price action.
The Trade Setup: $FOLKS / USDT
I am looking for a Long position here, betting on a bounce back toward the previous structural resistance.
Market Sentiment:
Cautiously Bullish (Oversold Bounce)
Entry Strategy: Primary Entry: $3.85 — 4.05 (Current Support Zone)
Aggressive Entry: Breakout above 4.15 with confirmed volume.
Stop-Loss: 3.45 (Below the recent swing low and S1 support to keep risk tight).
Targets: * Target 1: 4.40 (First major resistance)
Target 2: 4.85 (R2 Resistance / Mid-term target)
Stretch Goal: 5.40 (Liquidity gap fill)
Technical Rationale
The price has hit a major Demand Zone. Looking at the RSI on the 4H timeframe, we are seeing a slight bullish divergence—price making lower lows while the indicator creeps up. If we flip the 4.15 level into support, FOLKS could run hard and fast to fill the upper gaps.
Risk Warning: FOLKS is a high-volatility asset. Momentum looks good for a bounce, but we are still inside a broader downtrend. If it fails to hold the 3.45 support, the bullish idea gets shaky. Always use proper position sizing!
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