🔥 Why $AUCTION Price Pumped (Technical Breakdown)
1️⃣ Capitulation → Accumulation Zone
$AUCTION was in a long downtrend (-54% 1Y, -45% 180D).
Price based around 4.28–4.40, which acted as a strong demand zone.
Multiple small candles + low volatility = smart money accumulation. 👉 Weak hands exited, supply dried up.
2️⃣ Bollinger Band Squeeze → Expansion
Bollinger Bands (20,2) were tight → classic volatility squeeze.
Once price broke above MB (4.70), volatility expanded aggressively.
Price rushed toward upper band (5.54). 👉 BB expansion often leads to sharp impulsive moves.
3️⃣ Volume Confirmation (Very Important)
Huge volume spike on the breakout candle.
MA(5) volume > MA(10) volume → real buying, not fake pump.
Follow-up candles show decreasing volume = profit-taking, not dump. 👉 This confirms organic demand, not manipulation.
4️⃣ Short Squeeze Effect
After weeks of bearish structure, many traders were over-short.
Break above 5.0 psychological level forced shorts to cover.
That added fuel to the vertical candle toward 6.23 high. 👉 Short covering = fast green candles.
5️⃣ Healthy Pullback (Not a Dump)
Current price ~5.36
Pullback holding above MB (4.70) and previous breakout zone.
Small red candles with lower volume = bullish consolidation. 👉 Strong sign the move isn’t over yet.
📌 Key Levels to Watch
Support: 5.00 – 4.85
Major Support: 4.70 (BB middle band)
Resistance: 5.85 – 6.23
Break & Hold Above 6.23 → Next leg continuation
🧠 Market Psychology
$AUCTION labeled as “DeFi Gainer” → attracts momentum traders.
Low float + sudden volume = explosive moves.
After long pain, relief rally was inevitable.
⚠️ Risk Note (Important)
Price is still below long-term trend reversal confirmation.
Chasing green candles is risky.
Best entries are pullbacks, not tops.
📝 TL;DR (Perfect for Square)
> $AUCTION pumped due to accumulation at 4.3, BB squeeze breakout, strong volume confirmation, and short squeeze above 5.0. Current pullback looks healthy. Trend continuation depends on holding 4.7 support.
