$ME on a single day surge of over 40%, has contracted in trading volume at a high level, with RSI severely overbought at 77.67, and short-term momentum exhausted.
🎯 Direction: NoPosition
Market Analysis: After three consecutive bullish candles on the 4H chart, the latest candle has formed a high position doji star, with trading volume plummeting, indicating exhaustion of the willingness to chase prices higher. The buy/sell ratio has continuously declined during the rise (0.53 -> 0.48), indicating that the increase is mainly driven by short covering (short squeeze) rather than new long positions actively buying.
Logic Core: The current price is far from the EMA20 (0.1552) support, with a significant imbalance of -0.99%. The sell wall (Asks) is exceptionally heavy at 0.1904-0.1905 (over $100,000), constituting direct resistance. The open interest (OI) trend is stable, but the funding rate is unknown, making it impossible to confirm whether it is a healthy bullish trend.
Trading Plan: Refuse to chase prices higher. Wait for the price to make a healthy pullback, with the ideal buying area in the previous breakout zone and EMA20 support at the 0.1550-0.1600 range. It is necessary to observe whether this area shows volume contraction, buying absorption, and RSI pulling back to around 50. The current price belongs to an emotional surge, with a very poor risk-reward ratio, and the risk far outweighs the profit.
Trade here 👇$ME
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