PUMP surges into extreme overbought territory! Chase the highs? Sound the alarm!
Everyone, let's focus on the 4-hour battlefield of PUMP! This trend is truly 'bouncing around', and although the latest bullish candle has maintained its gains, the volatility has reached 2.72%, showing the fierce hand-to-hand combat between bulls and bears.
However, the technical indicators have sounded a deafening alarm! The most critical issue has arisen:
The RSI value has surprisingly reached 80.13! Undoubtedly, the market is 'burning' hot, entering extreme overbought territory!
The J value in the KDJ indicator is also elevated, similarly signaling the danger of excessive short-term heat and potential over-expenditure of buying momentum.
Looking at the position, the current price is approaching the upper Bollinger Band, with resistance effects gradually emerging. Although the short-term moving average MA7 can still provide some support, the contraction momentum of the MACD's red bars still needs confirmation. Given the high RSI, the reliability of this support is indeed a cause for concern.
The critical question arises: Can the price ignore the overheating indicators and continue to push upward? Historical experience tells us that overbought conditions often come with a cooldown. This sustained high-level energy is like a taut bowstring; the more it is pulled, the greater the release risk.
Now, facing such an extreme technical formation, I personally recommend staying highly vigilant! The risk of chasing highs in the short term has dramatically increased, and the pressure for a pullback has significantly risen.
Keep a close eye on whether the price can effectively break through the upper Bollinger Band, and watch if the RSI indicator can fall below 70, as this will be the most intuitive signal.
Additionally, the market is never short of opportunities, but the cost of impulsiveness is often heavy! If you truly want to seize the opportunity, why not follow me and let me help you manage risks while bringing you quality strategies!
