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DASH shows an interesting phenomenon on the USDT trading pair: in the short term, it is experiencing a pullback, but the larger cycle overbought signals have already sounded the alarm.
Understanding the data makes it clear. The 15-minute RSI is only at 63, still in the process of pulling back, but looking higher, it’s a different story — the 1-hour RSI has already surged to 78. Although the MACD histogram is still positive, it is in an extreme zone; the 4-hour RSI is even more extreme at 87, indicating a serious overbought condition.
The question is: trading volume has surged, but the price is stagnating. This divergence between volume and price often indicates that the bullish momentum is weakening and the price is struggling to move higher.
**Key levels to watch**
The current price is around 86.0, which is a battleground between bulls and bears. First resistance is at 88.5, then at 92.0 as a medium-term target. Support levels are at 83.0 and 78.5.
**My plan**
Chasing high in an extremely overbought environment is risky, so I am currently observing. If the price effectively breaks through 88.5, I will go long with a target of 92.0 and a stop-loss at 87.0. Conversely, if it falls below 83.0, I will switch to a short position, targeting 78.5 with a stop-loss at 85.0.
If it oscillates between 83.0 and 88.5, I will stay patient and avoid going against the trend to pick the top. Breakouts should be met with stop-losses; maintaining the right mindset is most important, and don’t get stuck on a single order.