Recently monitoring the trend of a certain coin, I’ve noticed several clues. After the price surged into the previous dense trading zone, it clearly hit a bottleneck. It looks poised to break out, but in reality, there are undercurrents.

Using Wyckoff methodology to analyze, the issue becomes clear. On lower timeframe charts, the repeatedly appearing upper shadows are not healthy accumulation or shakeouts, but standard signs of distribution at high levels. The surface activity seems lively, and buying interest appears to keep up, but close inspection reveals that many of these active buy orders are actually wash trades. The seemingly prosperous trading activity is backed by actual funds continuously exiting at high levels, and the momentum of each subsequent rally is weakening. This is a typical distribution structure.

From the perspective of chip distribution, the 0.26-0.264 range has formed a clear supply barrier. Every time the price approaches this zone, significant selling pressure emerges, like an invisible wall. If the price cannot effectively break through this range, the probability of a pullback will greatly increase.

The key line of strength and weakness is at 0.275. This is very important—if the price can hold steady here and volume increases, then the previously observed signs of distribution need to be reassessed, and there may still be room for further movement. But if it breaks through and then falls back again, it confirms the earlier judgment: all the surges are essentially part of trap trading.

In the short term, chasing high is indeed risky. Watch whether this critical zone can be truly broken. Don’t be fooled by superficial activity. Such routines repeat in the market; the key is to identify genuine supply and demand signals, rather than being deceived by wash trades and false prosperity.