On the daily chart, BANANAS31 shows a strong bullish momentum (+21%), however, the price has approached a critical resistance zone at $0.0066. Buying 'in the market' at the peak of the vertical candle is a high risk of falling into correction.
Technical facts:
RSI (6): Stands at 77.0. The asset is significantly overbought. Historically, after such values, a local price cooling follows.
Volume: Volumes are increasing, confirming buyer strength, but we have hit a local maximum.
Structure: Parabolic SAR ($0.0046) confirms the long trend, but the gap between the price and the indicator is too large — the price may 'magnetize' down for a retest of levels.
📍 My trading plan (Conservative):
Instead of entering at current prices, I consider entering on the retest of the broken level:
Entry zone (Limit Buy): $0.0058 – $0.0060. Waiting for a local pullback for a better Risk/Reward ratio.
Target 1: $0.0066 (Return to high)
Target 2: $0.0074 (Next resistance level)
Stop-loss: $0.0053. Holding below this level is a long scenario.
⚠️ Summary: The trend is upward, but entering now is playing with 'hope'. It's better to wait for
Confirmation of buyer strength at the level of $0.0060.
Follow risk management and don't forget that the coin has a seed tag
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