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IvanLabrie
Feb 5, 2023 3:23 PM

$LDOUSDT: Good to have some shorts... Short

LDO / TetherUSBinance

Description

As the Shanghai fork gets closer to materialize, the idea of a supply shock affecting crypto market stability becomes more important to consider. 15 million Ether deposited by 485k validators are currently locked in the Beacon chain and will be freed in one month give or take. I'd be ready to short if presented with opportunities to do so, it is imperative that traders are flexible and keep an open mind and trade setups as they come.
In this case, LDOUSDT offers a low risk short here, while we still have bullish signals active in other coins. It's probably reasonable to trade both sides in different coins if you're actively trading crypto, managing risk and not focusing on hodling things at all costs, that only works while the trend is extremely stable and pointing up, but at some point you need to secure gains to not participate on the humongous drawdowns that characterize this space.
Best of luck!

Cheers,

Ivan Labrie.

Trade closed: stop reached

Comments
ryopphdi
Hi Ivan,

AFAIK ETH protocol will allow only handful of validators per day to shut down their operations and withdraw everything. Hence the supply shock will be most probably gradual and exist for longer time.
On the other hand after Shanghai upgrade protocol will be working as it should allowing both new participants to join staking and existing stakers to remove money from the network.

Long term I do think this is very positive. No idea about short term.

Thanks!
IvanLabrie
@ryopphdi indeed, after the initial supply shock (people stuck since late 2020 likely will want to take profits, specially if sentiment is right for a bullish trend) it should be bullish if things evolve positively. looking forward to that.
tradetowin81
haha rekt. noob
SwallowPremium
We really like this setup. It can work out very well. Thanks for sharing.
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