FLOKI Overbought Alert! Short Opportunity Emerges, Quickly Seize the Pullback Dividend!
Current FLOKI price 0.09157, soaring 11.83% in 24 hours, but RSI 78.47 is severely overbought, trading volume is shrinking (ratio 0.601), funding rate is negative and long-short ratio is declining, indicating high short-term pullback risk. It is recommended to short at highs, entry at 0.0915, stop loss at 0.0935, target at 0.0850, risk-reward ratio 3.25. Risk: Continued overbought or macro events may reverse the trend, single trade risk should not exceed 2%.
Technical Analysis:
• Price is closely touching the upper Bollinger Band (84.38% position), strong overbought signal; above MA200 (0.07811) and holding cost (0.07941) showing strength, but deviation exceeds 15%.
• Shrinking trading volume combined with price increase indicates insufficient momentum; open interest increased by 6.42% in 24 hours, but long-short ratio dropped to 1.55, smart money turning short. No major news, market sentiment has digested the upward trend.
• Key support: 0.0850 (lower band and psychological level), resistance: 0.0935 (upper band); liquidity concentrated in the 0.1130-0.1560 range, selling pressure is relatively high.
Market Cycle Analysis:
In the mid-top area of a bull market, the upward trend is excessive, facing adjustment risks, sustainability is low.
Trading Strategy:
• Short entry: 0.0915 (aggressive market price, conservative wait for rebound to 0.0920).
• Stop loss: 0.0935 (above upper band).
• Target: 0.0850 (support area).
• Risk-reward ratio: 3.25.
Risk Warning:
• Market risk: If RSI overbought continues (e.g., breaks 0.0935), or sudden positive news drives up the price.
• Strategy failure: If price breaks below 0.0850, stop loss and reassess.
• Operation Note: Position ≤2%, avoid low liquidity periods during Asian session.
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