BANANA's 24-hour increase of over 30% definitely grabs attention, and the scene of trading volume soaring by 661% looks crazy. But a closer look at the market reveals several issues.



The 4-hour RSI has already approached 74, firmly in overbought territory, yet the price has started to stagnate (down 2.34% over 4 hours)—this is a classic case of volume-price divergence. The bullish MACD bars on the hourly chart are narrowing, and the 1-hour chart has already turned negative. Such signs are rarely good.

A small-cap asset suddenly surging with huge volume often indicates short-term distribution, and FOMO driven by positive news pushing to the top is even more so. Is this the start of a new trend or the last blow before the trend exhausts? It's hard to tell. The risk of chasing long positions aggressively is indeed high.

From a contrarian perspective, high sentiment levels should keep us alert. If the price pulls back to around 7.00 USDT, whether it can hold this support is crucial. If it breaks down to 6.80 USDT, consider trying short positions, mainly with small size.

Currently, the best choice is to stay on the sidelines and patiently wait for opportunities.
BANANA17.06%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 4
  • Repost
  • Share
Comment
0/400
MrRightClickvip
· 8h ago
Such a clear divergence between price and volume, chasing highs is really just gambling behavior.
View OriginalReply0
MetadataExplorervip
· 8h ago
The divergence between price and volume is really hard to deceive. RSI is already at 74 but still showing stagnation, which is outrageous. It looks like another wave of cutting leeks is coming, small-cap coins are just like this.
View OriginalReply0
UncleLiquidationvip
· 8h ago
The thing about divergence between price and volume is the easiest way to fool beginners. RSI is already at 74, and it's still rising. This is hilarious.
View OriginalReply0
RooftopReservervip
· 8h ago
Looking at this divergence between volume and price, RSI is already at 74 but the price is still stagnant, indicating that funds are being distributed. Small-cap coins are such a deep game; the FOMO market always ends up the same way.
View OriginalReply0
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)