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Recently observing the $STO trend, it feels very much like a turning point in a popular cycle.
After the 4-hour RSI surged above 70 and volume increased, the trading volume then shrank by 88%—this is a typical sign of the emotional climax ending. When everyone rushes in, it’s often already the tail end. Many traders are still chasing the rally at this stage, only to become the last bagholders.
Key observation points are as follows:
**Market Nodes**: Currently, the price is hovering near a key support level. Looking upward, if it can break through the previous high at 0.135 and the 1-hour trading volume increases by over 300%, it indicates that new incremental funds are entering the market. At this point, consider a light long position. Conversely, if it falls below the 4-hour EMA20 (around 0.112), market sentiment will reverse, and shorting might be safer.
**Strategy**: Don’t chase during the emotional climax, and don’t panic buy at the bottom. Just observe and wait for clear signals before acting. Decreasing volume itself tells you that outside funds haven’t decided on a direction yet.
**Insights**: Profitable traders are often those who quietly adjust their positions before most people react. Sector rotation and sentiment shifts are detectable signs, as long as you’re willing to observe.
The above is just a personal trading perspective. Investment involves risks; please manage your risk accordingly.