Looking at the 1000PEPE futures chart, there are indeed some extreme overbought signals. The 15-minute RSI has already surged to 83, and the 1-hour and 4-hour RSIs are both above 87, which indicates a very strong overbought condition. However, the 4-hour MACD is still trending upward, and although the 1-hour histogram is shrinking, there are no clear signs of a trend reversal overall.

The most critical aspect to watch is the trading volume — it has suddenly shrunk by 99.5%, indicating liquidity has become very exhausted. In such a situation, price volatility can be very sharp, and even a small trigger could cause a flash crash.

Here are some key price levels I am watching:

Currently around the psychological level of 0.0100. Upward resistance is at 0.0105, and above that is 0.0110. On the downside, support is at 0.0096, with a further support at 0.0090.

My trading approach is roughly as follows: if the price can hold above 0.0105, I would take a small long position aiming for 0.0110, with a stop-loss set at 0.0102. Conversely, if it breaks below 0.0096, I would reverse and go short, aiming for a fall back to 0.0090, with a stop-loss at 0.0100. Currently, I prefer to stay on the sidelines and not chase the high.

Honestly, with such poor liquidity, anything can happen. Instead of speculating on what might happen after extreme overbought conditions, it’s better to wait for a clear breakout or breakdown before acting. Stop-losses must be tight, as reversals can happen very quickly.