A correction like this is actually healthy. It shakes out weak hands, clears over-leveraged longs, and resets funding so price can move with strength instead of hype. This $RESOLV long liquidation around $0.08011 looks like that kind of reset — not weakness, but preparation.

I’m watching how price behaves around this area very closely. After the flush, sellers lost momentum and price started stabilizing instead of accelerating down. That usually tells me the market is absorbing sell pressure and they’re building strength quietly.

Why this zone matters

This area aligns with a previous support base where price consolidated before the last impulse move.

It also sits near a key retracement zone of the recent leg up, a common place where smart money looks for re-entries.

We’ve already seen multiple reactions and wicks here, showing buyers are active and defending the level.

As long as this zone holds, I see this as a potential continuation setup rather than a breakdown.

Trade Setup I’m watching

Entry Zone: $0.0785 – $0.0810

Target 1: $0.0865

Target 2: $0.0930

Stop Loss: $0.0759

If this level holds, I expect a grind higher first, followed by expansion once liquidity above is taken. I’m not rushing — I’m watching confirmation and volume behavior. But structurally, this correction did its job, and now the chart looks like it’s resetting for the next move.