🔥🚀$SOMI – Parabolic Breakout, Overheated but Structurally Strong
Market Structure
SOMI has transitioned from a prolonged accumulation near 0.18–0.20 into a parabolic expansion phase, printing strong higher highs and higher lows on the 1H structure. The move is impulsive and momentum-driven, typical of a price discovery leg, but currently extended.
Key Support & Resistance
Immediate Support: 0.32–0.30 (post-breakout base)
Major Demand Zone: 0.27–0.28 (previous consolidation)
Immediate Resistance: 0.36–0.38
Major Supply / Exhaustion High: 0.4235 (recent spike high)
Momentum & Indicators
RSI (6): ~84 → extremely overbought
Price riding upper Bollinger Band → momentum intact but stretched
EMA structure: Strong bullish alignment, trend remains intact until structure breaks
Fundamental / Narrative Drivers
Ecosystem growth: New Somnia Exchange quests and Sommorn NFT project
Validator & community engagement increasing network visibility
Strong narrative + low float = high volatility continuation asset
Bias: Bullish Trend, Expect Volatility & Pullbacks
Trend remains bullish, but conditions are overheated. Healthy pullbacks toward 0.32–0.30 would reset momentum and offer better risk entries. A clean reclaim and hold above 0.36 opens room for a retest of 0.40+. Loss of 0.30 would signal deeper mean reversion.
Trader’s Note:
This is no longer a chase zone. Best opportunities come from pullback + structure confirmation, not FOMO entries.
