【$FOLKS Signal】Waiting for a pullback, overbought conditions on the 1H timeframe need to be digested

$FOLKS 1H timeframe shows a sharp rise followed by a pullback, the 4H Bollinger upper band at 1.3193 has been pierced, current price at 1.346 is close to the 1H upper band at 1.3772. RSI on the 1H has slid from a high to 66.75, while the 4H RSI soared to 85.38, indicating a break in buying momentum. MACD 1H histogram is contracting, bullish momentum slowing down. Market depth is imbalanced—4.25% more sell orders, active selling pressure is accumulating.

Price has formed a clear upper shadow around 1.443, indicating selling pressure above. Chasing higher at this level greatly increases risk, and the risk-reward ratio is not favorable.

🎯Direction: Wait for a pullback to go long

⚡Entry/Order: Place a buy limit order in the 1.078 - 1.339 range

🛑Stop loss: 0.999

🚀Target 1: 1.351

🚀Target 2: 1.356

🛡️Trade management: - Execute strategy: Reduce 50% of the position after reaching Target 1, and move the stop loss to break-even. If the price falls back into the entry zone, exit automatically to protect capital.

The 4H EMA20 and EMA50 are forming a bullish crossover, indicating the medium-term trend remains intact. However, the divergence between volume and price on the 1H timeframe requires a healthy pullback to digest overbought conditions. Funding rate at 0.0505% is acceptable, with no extreme short squeeze risk. Focus on the 1.24-1.28 zone, near the 1H EMA20 and Bollinger middle band, to see if a solid support can form. If the price directly breaks below 1.24, the bullish structure is broken, and the current setup should be abandoned.

Check real-time market 👇 $FOLKS
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