$BULLA experienced explosive growth of 98%, reaching a peak of $0.07495 and entering the zone of extreme overbought conditions. The RSI indicator remained above 80 for a significant part of the ascent, which is a maximum signal of overheating. The price has now stabilized around $0.06400, which can be seen as a healthy pause after the parabolic movement. Key moving averages are far below, indicating a significant technical gap that is usually closed either by a correction or sideways movement.
This is a classic situation of seeking equilibrium after a FOMO rally. The most likely scenario is the formation of a consolidation zone between $0.05800 and $0.06700 to reduce volatility and transition the momentum into a trend. A deep correction to the zone $0.04800 - $0.05500 (levels EMA(7) and EMA(25)) would also be a logical development for building a sustainable upward structure.
Entry (short on a bounce from resistance): $0.06700.
Targets:
TP1 — $0.05800
TP2 — $0.05500
Stop-loss: $0.06900 (break and hold above $0.06750, which may resume the frenzied growth to new highs).
Vertical candles are born from emotions, not from fundamental strength. Their sustainability is tested by the ability of the price to hold and form a platform for the next step.
What do you think will be a stronger signal for the start of a significant correction — the formation of a bearish pattern (for example, a double top) on the chart or a sharp decline in volumes during subsequent attempts to rise?