ZKP has recently surged over 50% in the past 24 hours, with the long position ratio on a major exchange soaring to 71.5%. The Relative Strength Index (RSI) has also shot up to 90, entering the overbought zone. Behind this rapid increase, there are actually several risk signals.

From the market perspective, retail investors' enthusiasm clearly exceeds that of large funds. What does the 71.5% long position ratio indicate? It suggests that trend-following retail investors are rushing in desperately, while institutional funds remain silent. This mismatch often signals potential correction pressure. Coupled with the RSI already in an extremely overbought state, any negative news could trigger a quick decline.

Rather than risking chasing the high, it’s better to wait for a better entry opportunity. A reasonable strategy should be: patiently wait for the price to fall back to the 0.160-0.165 range before considering entry, making the risk-reward ratio more balanced. Set a stop-loss below 0.155, with a target around 0.190.

If the market continues to weaken and breaks below the 0.155 support, consider abandoning this trade and wait for a stronger support level at 0.140-0.145 to reassess. The biggest risk in trading is chasing at the top; it’s better to miss a wave than to be forced into a position during bullish frenzy. Maintaining calm judgment often yields more stable returns than following the crowd with reckless enthusiasm.