Recently, the trend of 0G is quite interesting. In a short period, it surged from 1.1U to 3.6U in one breath, and then it hovered around 2.7U, which is a typical digestion phase after a violent surge.
Looking at the indicators, the RSI once went above 70, and indeed it is a bit overheated in the short term. Now it has returned to between 64-70, and the pace has slowed down. The trading volume is also similar; a few days ago it surged significantly, but now it is gradually shrinking, indicating that the main force has cashed out part of their chips at a high position and is controlling the market here.
Now, regarding the contracts:
• IO (Open Interest) continues to rise, with funding increasing on both sides.
• The liquidation heat map is crucial; below 2.5-2.6U is a cluster of long positions. If it really breaks down, there may be a chain liquidation. Above, near 3U, there is significant pressure on short positions, and whether it can break through depends on whether the main force is strong enough.
The indicator structure is also quite clear:
• The moving averages are converging, and if a golden cross occurs, it may lead to a direct upward movement.
• The volume is shrinking, as if holding its breath waiting for an explosion.
My own interpretation:
0G is not OG; it is a modular decentralized AI public chain. The narrative is there, and the funds are also present. This kind of new narrative combined with high control of chips creates many opportunities in a volatile contract market. Right now, it is a range-bound accumulation phase; either it breaks below 2.5 triggering a liquidation waterfall, or it stands above 3U opening new heights. Both sides can play.
• In the spot market, 2.5-2.7U is considered a reasonable oscillation zone.
• In the contract market, keep a close eye on the break below 2.5 and the breakthrough above 3U; whichever direction it moves out, it is a golden opportunity.