From the 4-hour timeframe, this trend is clearly bearish. After encountering strong resistance at the key supply zone of $2.28, the price pulled back, forming a lower high—which basically confirms that the bears are now in control. As for the current rebound? Frankly, it’s just a weak retracement after the breakdown, with very limited strength.

Our entry signals mainly focus on the 1-hour chart: pay close attention to the RSI indicator’s reaction when it approaches or tests the 50 line. If it gets pushed back down at this level, it indicates that the bulls’ rebound momentum is exhausted and the bears are ready to take over again. At the same time, the price is likely to be suppressed below key exponential moving averages during the retracement, providing a double confirmation signal for shorting.

Why choose to build short positions here? The logic is simple—we are following an already established 4-hour downtrend. The current rebound happens to offer a good risk-reward entry point. By setting a stop loss just above the recent minor swing high, we can effectively control risk exposure while aiming for the demand zones below, allowing for both offensive and defensive flexibility.

Specific trading plan (short setup):
Entry price: around 2.1008 at market
First target: 2.0052
Second target: 1.9097
Stop loss: 2.1645

The core of this strategy is to seize the opportunity for trend continuation, entering precisely when the retracement ends and the bearish momentum resumes.