【$USELESS Signal】Long chasing game + 1H level momentum breakout, beware of RSI overheating

$USELESS The 1H timeframe is currently in a high-level consolidation after a violent surge, with the price close to the intraday high. The 1H RSI is as high as 85.66, entering the extreme overbought zone, indicating a very high short-term risk of chasing the rally. However, open interest (OI) remains stable, and the price has refused to undergo a deep correction after the massive rally, suggesting strong buying support. The main force may be aiming for higher levels. Currently, this is a typical high-risk, high-reward trading point, not suitable for directly chasing the high. Wait for a pullback or a secondary breakout signal.

🎯 Direction: Watch and wait ( Pending orders )

⚡ Pending order strategy:

1. 【Breakout Long Entry】If the price strongly breaks through and stabilizes above 0.04800 (Reason: Breaks the current consolidation upper boundary and the psychological round number), it is considered the start of a new momentum wave.

2. 【Pullback Entry】If the price healthy retraces to the 0.04500 - 0.04550 range (Reason: Support from the previous hour's candlestick body and the 1H EMA20 dynamic support), and the 1H candlestick shows a sign of stopping the decline (such as a lower shadow or a small bullish candle).

🛑 Stop loss: 0.04380 (Reason: Breaks below the structural low of the retracement entry zone, trend may weaken).

🚀 Target 1: 0.05000 (Reason: Psychological round number and resistance level).

🚀 Target 2: 0.05250 (Reason: Based on the recent upward move's 1.382 Fibonacci extension level).

🛡️ Trading management:

- Position size suggestion: Very light position (Reason: RSI is severely overbought, volatility is intense, indicating high risk).

- Execution strategy: If the breakout order is filled, reduce position by 50% near Target 1, and move the remaining stop loss to the entry price. If the pullback order is filled, similarly reduce at Target 1 and move the stop loss to break-even. Under any circumstances, if the price falls back into the entry zone, consider it a failure and exit decisively.

Deep logic: The price surged nearly 40% within 24 hours, but open interest (OI) remained stable rather than soaring, implying the rally may be driven by spot buying or passive short covering rather than a large influx of new leveraged longs, raising doubts about sustainability. Market depth shows a significant increase in sell orders above 0.0476, forming a short-term resistance wall. The 1H EMA20 has quickly moved up to 0.0411, becoming a dynamic strong support. The core of the current strategy is to avoid the risk of a direct pullback under RSI overbought conditions, using conditional orders to capture trend continuation or healthy retracements for secondary entries.

Trade here 👇 $USELESS

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