CHESSUSDC Breaks Out — But Overbought RSI Signals a Possible Pullback

Summary
• Price surged 20.7% from $0.00944 to $0.01038, forming a strong bullish reversal.
• Volume increased significantly during the breakout above 0.0097, confirming momentum.
• RSI entered overbought territory, suggesting potential for a near-term pullback.
• Bollinger Bands expanded, indicating heightened volatility in the last 6 hours.
• Fibonacci retracement levels at 0.0097 (38.2%) and 0.0101 (61.8%) showed key support/resistance.

Tranchess/USDC (CHESSUSDC) opened at $0.00944 on 2026-02-06 12:00 ET and closed at $0.01038 by 2026-02-07 12:00 ET, reaching a high of $0.01179 and a low of $0.00926. The 24-hour volume was 9.59 million USDC, with a notional turnover of $104.25K.

Structure & Formations

The price formed a bullish engulfing pattern above the 0.0097 level, signaling a potential trend reversal. Key support levels were at $0.0097 and $0.0101, while resistance emerged at $0.0108 and $0.0114. A doji near $0.0114 suggested indecision among buyers.

Moving Averages

On the 5-minute chart, the 20-period and 50-period SMAs crossed above the price during the rally, reinforcing bullish momentum. Daily moving averages (50/100/200) remained in a bullish alignment, with the 50-period line acting as a dynamic support at $0.0099.

Momentum & Overbought Conditions

The RSI surged above 70 in the final hours, indicating overbought conditions. The MACD crossed above the signal line with a positive histogram, suggesting continued upward momentum, though with diminishing strength in the last 2 hours.

Volatility & Bollinger Bands

Bollinger Bands expanded significantly as the price broke above the upper band around $0.0109, indicating heightened volatility. Price remained inside the bands for most of the session, with the 20-period SMA tracking near the middle band.

Volume and Turnover Analysis

Volume surged during the breakout from $0.0097 to $0.0108, confirming the move. Turnover aligned with volume increases, showing no divergence. However, volume during the rally to $0.01179 was slightly lower, suggesting reduced conviction at higher levels.

In the next 24 hours, the price could consolidate between $0.0101 and $0.0108, with a potential pullback if RSI remains overbought. Investors should remain cautious as a break below $0.0099 could trigger a short-term correction.