BANANA's recent performance has indeed attracted attention—17% daily increase, with trading volume surging by 666%, looking very prosperous. But upon calmly analyzing the K-line, things are not that simple.
The 4-hour chart actually shows a downtrend, with a decline of -3.7%. More interestingly, the 1-hour MACD has already formed a death cross. Although the price is rallying, the RSI has just crossed above 51, indicating there is no strong momentum support. It's like someone running with a fast heartbeat—looking lively, but actually lacking sufficient energy.
Volume-price divergence is often a turning point. Increasing trading volume usually indicates two possibilities: one is market turnover, and the other is major players distributing. When the price hits a new high, the MACD histogram turns negative, which is a divergence—considered a risky technical signal. Historically, high-volume peaks often signal distribution opportunities.
Therefore, my judgment is to short on rallies. Entry around 7.50 USDT, with a stop-loss if the price breaks above 7.85. The target levels are set at 6.90 and 6.40 respectively. The idea is clear: short-term sentiment is overheated, and chasing the rally carries high risk. Of course, if BANANA can strongly break through the previous high and stabilize, I will reconsider my stance.
The market always has different voices; the key is to understand the logic behind the price.
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governance_ghost
· 13h ago
I've heard the explanation of divergence between price and volume too many times. Every time it's said to be distribution, but then it turns around and goes up again. It's hilarious.
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TooScaredToSell
· 13h ago
The divergence between price and volume is really powerful. It's always the same trick to harvest retail investors. We need to be more vigilant.
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NFTArchaeologist
· 13h ago
The old trick of massive sell-offs at high levels, those chasing the rally all have to take the bait
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GasGoblin
· 13h ago
I've heard the concept of divergence between price and volume too many times, but it still got proven wrong. Anyway, I don't believe it anymore.
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NewDAOdreamer
· 13h ago
I've heard the narrative of divergence between price and volume too many times, but shorting at 7.5 is indeed somewhat interesting. I'm just worried it might turn into one of those stories where people buy the top.
BANANA's recent performance has indeed attracted attention—17% daily increase, with trading volume surging by 666%, looking very prosperous. But upon calmly analyzing the K-line, things are not that simple.
The 4-hour chart actually shows a downtrend, with a decline of -3.7%. More interestingly, the 1-hour MACD has already formed a death cross. Although the price is rallying, the RSI has just crossed above 51, indicating there is no strong momentum support. It's like someone running with a fast heartbeat—looking lively, but actually lacking sufficient energy.
Volume-price divergence is often a turning point. Increasing trading volume usually indicates two possibilities: one is market turnover, and the other is major players distributing. When the price hits a new high, the MACD histogram turns negative, which is a divergence—considered a risky technical signal. Historically, high-volume peaks often signal distribution opportunities.
Therefore, my judgment is to short on rallies. Entry around 7.50 USDT, with a stop-loss if the price breaks above 7.85. The target levels are set at 6.90 and 6.40 respectively. The idea is clear: short-term sentiment is overheated, and chasing the rally carries high risk. Of course, if BANANA can strongly break through the previous high and stabilize, I will reconsider my stance.
The market always has different voices; the key is to understand the logic behind the price.