【$ON Signal】Beware of overbought conditions, wait for a pullback to re-enter

$ON 1H level RSI soared to 78.5, and the 4H level even surged to 87.6, indicating buying power is severely overextended. The 4H Bollinger Band upper band was directly broken through, with the price deviating from the middle band by over 70%, such expansion lacks a sustainable foundation. Market depth imbalance -47%, sell orders far exceed buy orders, funding rate reaches 0.12%, increasing the cost pressure on long positions.

Price is around 0.182, at this level, chasing profits has a very poor risk-reward ratio, and the upside space is severely compressed.

🎯Direction: Wait and see, wait for a pullback or structural breakdown

⚡Entry/Order placement: Do not chase high; if the price falls below the 1H EMA50 (0.1172) and confirms a rebound, consider placing a buy order around 0.1148.

🛑Stop loss: 0.0982

🚀Target 1: 0.1481

🚀Target 2: 0.1647

🛡️Trade management:
- Execution strategy: This is a left-side setup, trade with light position size. If the order is filled and the target 1 is reached, reduce position by 50%, and move the stop loss to the entry point. If the price does not rebound as expected, cut losses decisively.

Although MACD on 1H and 4H levels still shows expansion, the histogram is showing signs of convergence, indicating momentum is waning. Volume on the latest 4-hour candle has significantly shrunk, and the willingness of funds to push higher is weakening. Open interest remains stable but the funding rate is abnormally high, forming a typical “bullish exhaustion” scenario, with short-term pullback demand outweighing upward momentum. The more prudent strategy now is to wait for the market to complete a chip rotation.

Check real-time quotes 👇 $ON
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