【$VELVET Signal】Beware of overbought pullback, attempt short at high levels

$VELVET 1H level RSI soared to 81.45, 4H level even reached 81.92, buying pressure has already become severely overextended. The 4H Bollinger Band upper band was directly broken through, with the price operating at 0.1079, far exceeding the upper band resistance at 0.1034. Although MACD on the 1H and 4H levels is still expanding, such extreme divergence between price and momentum often accompanies sharp corrective reversals. The order book depth imbalance is 8.35%, and selling pressure is quietly accumulating.

Chasing longs at this position makes the risk-reward ratio extremely unfavorable. Aggressive traders can try a small short position around 0.10739, aiming for a technical pullback.

🛑Defense must be placed below 0.08109.

🚀First target is set at 0.10789, which is the first line of defense for the bulls.

🚀Second target is 0.10832; breaking through here invalidates the bearish logic.

🛡️Trading management:
- Execution strategy: If the price rebounds to touch 0.10832, close the short position unconditionally. If the price successfully drops to the first target, move the stop-loss to the entry price to protect capital.

Funding rate is as high as 0.0699%, which is a cost that longs must continuously pay. When prices stagnate, it can easily trigger long liquidation cascades. The 1H trading volume has shrunk after the surge, and subsequent buying follow-up is weak. Currently, the price is at an absolute high, and any disturbance could trigger profit-taking sell-offs.

Check real-time market 👇 $VELVET
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