Magic Eden $ME Analysis: BUYBACK NEWS = SELL OFF? 📉

$ME just announced a major ecosystem revamp (15% revenue to buybacks + staker rewards), but price dumped -10% today. Here’s the data-driven breakdown:

🔍 TECHNICALS:

· Strong downtrend on all TFs (15m → 1D)

· Price below all key EMAs

· RSI weak (<50 on most charts)

📊 DERIVATIVES SIGNAL BEARISH:

· Funding Rate: Extreme negative (-0.2555%)

· CVD: Heavily negative (-$21M to -$41M)

· Taker Sell Volume >> Buy Volume

🧠 WHAT’S HAPPENING?

Classic"Buy the rumor, sell the news." The buyback plan (starts Feb 1) couldn’t hold against selling pressure & macro sentiment.

🎯 KEY LEVELS:

· Resistance: $0.264 - $0.272

· Support: $0.247 (break → $0.220 target)

⚠️ WATCH OUT:

Extreme negative funding= high short interest → potential for a violent short squeeze on any positive catalyst.

🤖 MY BIAS: SHORT (with tight stops) until price reclaims $0.285. Long-term bullish from Feb if buyback executes as planned.

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