$ME surged over 40% in a single day, then consolidated at a high level with a significant reduction in volume. RSI is seriously overbought at 77.67, indicating short-term momentum exhaustion.
🎯 Direction: No Position
Market Analysis: After three consecutive bullish candles with increasing volume on the 4H chart, the latest candlestick formed a high-position doji, and the trading volume plummeted, showing a depletion of buying enthusiasm. The buy/sell ratio continued to decline during the rally (0.53 -> 0.48), indicating that the rise was primarily driven by short covering rather than new long positions being actively bought.
Hard Logic: The current price has moved far from the EMA20 (0.1552) support, with a deep imbalance of -0.99%. The sell wall (Asks) at 0.1904-0.1905 is exceptionally heavy (over 100,000 USD), creating direct resistance. The open interest (OI) trend is stable, but the funding rate is unknown, making it impossible to confirm whether it is a healthy bullish trend.
Trading Plan: Reject chasing highs. Wait for a healthy price correction, with an ideal entry area around the previous breakout level and EMA20 support of 0.1550-0.1600. It is necessary to observe whether this area shows a decrease in volume, buying absorption, and RSI pulling back to around 50. The current price is characterized by emotional spikes, with a poor risk-reward ratio, where the risks far outweigh the rewards.
Trade here 👇$ME
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