19% Rally Collapses Following Fading 'Short Squeeze' Pressure

• • Technically, the price failed to maintain its upward structure and retraced back to the support zone floor on the daily and 1-hour charts.
• • Fundamentally, the 19% rally on April 7, 2026, driven by short liquidations, proved highly fragile due to a lack of organic buyer accumulation.

On April 7, 2026, the 19.93% price surge to $12.23 was purely driven by a short squeeze phenomenon, where short liquidations reached $157,28, forcing sellers to buy back their positions. However, technical indicators at the time sternly warned that this trend lacked strong conviction (ADX indicator at 18) and directional control was still held by sellers (-DI remaining above +DI). As evidenced on the current 1-hour (1H) and daily (1D) charts, this fundamental fragility has materialized; the price lost its footing in the upper liquidity area at $12.00 and plummeted back to the $10.96 area. Because this rally was not supported by real fresh demand after the liquidation pressure eased, its upward momentum structure has broken. Selling pressure is projected to force the price to break the current support floor and seek a new liquidity footing in the lower demand zone within the $9.5 to $10 range over the next 3 days.

The condition of the price slipping back to the initial demand zone ($11.1) is testing the final defense of the buyers. If massive fresh capital flows suddenly enter to defend this lower boundary, the price has a chance to stabilize into a consolidation phase. A decisive breakdown below the $10.5 level will confirm complete seller control.