$SHADOW Explodes 22% in 60 Minutes,Warning Signs Flash

• SHADOW Surges 22%: Explosive breakout triggers overbought warnings.
• Traders warned of extreme price swings and low liquidity.
• Momentum around the token builds, but caution advised.

Shadow, a utility token powering the Shadow dePIN ecosystem, has broken above key resistance levels. Driven by above-average volume, its price action depicts clear bullish dominance, paving the way for an impressive 22.4% gain in a single hour. This surge has captured the attention of traders and analysts alike, with momentum indicators flashing strong positive signals.

However, the rapid ascent has sparked concerns of overinflated prices. Delving deeper into its technical metrics, the Relative Strength Index (RSI) at 75.88, depicts overbought conditions, suggesting the token’s correction is imminent.

However, the Moving Average Convergence Divergence (MACD) crossover reinforces the bullish momentum, but the wide Bollinger Bands (64.81%) and a high Average Directional Index (ADX) reading of 69.0 confirms the extreme volatility surrounding the token.

$SHADOW Explodes 22% in 60 Minutes,Warning Signs Flash 3

SHADOW’s primary resistance is $173, with a major psychological resistance level at $215. The pivot point at $144 serves as immediate support, while stronger support clusters are found at $35.95. Given the token’s 10/10 volatility rating, risk management is crucial. Traders are therefore advised to consider entering positions on pullbacks to the pivot or first support levels, utilizing tight stop-loss orders.

SHADOW: Trailing Stops and Conservative Entries Advised

For those already holding SHADOW, analysts recommend implementing trailing stops to protect profits amidst the high volatility. New entries should be sized conservatively due to the token’s limited liquidity (2/10) and the potential for significant slippage.

Additionally, the low liquidity rating of 31.26% requires wider stop-loss orders to account for volatile price swings. Overleveraging is strongly discouraged in the current market conditions.

The Shadow dePIN ecosystem, focuses on decentralized storage, compute, and network orchestration. One of its primary applications is in decentralized data storage, where users can pay for storing their data securely across a distributed network.

All-in all, the SHADOW token’s explosive momentum and high Discovery score of 83.4% indicate strong potential for continued price discovery. However, the overbought RSI and extreme volatility suggest traders should proceed with caution, balancing the potential for gains with the inherent risks.