GUN Token Shows Recovery Setup After Sharp Dump to Support Level

The GUN token has experienced a significant dump, driving prices down to established support levels. This sharp decline has created technical opportunities for traders. At the current price of $0.03, the market is positioning itself for a potential relief rally if the support zone maintains its integrity through the coming sessions.

Understanding the Current Selloff and Support Dynamics

The recent selloff has been notably clean, penetrating toward key support without excessive volatility spikes. More importantly, a reaction wick has emerged at these lower levels, signaling that buyers are stepping in to defend the support zone. This is a classic technical pattern that often precedes a recovery bounce. When a dump reaches support and displays this type of price action, it typically indicates that the initial selling pressure is exhausted and a reversal setup may be forming.

Traders should monitor whether the support holds during the next 24-48 hours. If this technical level proves resilient, an upside recovery can potentially develop quickly as buyers gain confidence in the floor beneath the price.

Trading Strategy: Entry, Targets, and Risk Management

For those looking to capitalize on the recovery setup, here’s a structured approach:

Optimal Entry Range: 0.0223 – 0.0229 (Buy Zone)

Profit Targets:

• TP1: 0.0238
• TP2: 0.0252
• TP3: 0.0270

Stop Loss: 0.0215

This structure provides a favorable risk-to-reward ratio. The stop loss sits just below support, ensuring discipline if the technical setup fails. Meanwhile, the tiered profit targets allow traders to scale out gains as the relief bounce unfolds, reducing exposure as resistance levels come into play.

The key to success here is patience—waiting for the support to hold before committing capital, then entering within the defined buy zone as the recovery momentum confirms.