FOLKS(FOLKSUSDT)'s 1-hour chart hides a trading opportunity that many haven't fully understood.

On the surface, this might be seen as just another retracement in a downtrend. But a closer technical analysis reveals that the bottom formation signals are actually quite clear — the final shakeout should have already ended, and the rebound countdown has long begun.

**From a technical perspective, bottom features appear one after another**

After the price touched the low of 4.737, it immediately reversed and closed higher at 4.973. This "breakdown then rebound" pattern usually indicates that the bears have run out of steam. The Bollinger Bands also show a more intuitive picture — the upper and lower bands have contracted from 4.827 to 6.013, now squeezed to the extreme, with volatility compressed to a critical point. This state cannot last long, and the market will inevitably choose a direction. Once a breakout occurs, a large bullish candle could directly expand the entire range.

Although the MACD green bars are still below the zero line, a careful look shows the bars are noticeably shortening. The DIFF line is also showing signs of turning upward. These details together suggest that the bullish forces are already gathering in the shadows, ready to launch a main attack at any moment.

**On-chain data confirms the technical signals**

Looking only at candlesticks can be misleading. But from an on-chain data perspective, smart money is continuously building positions within this range. The concentration of holdings is increasing, indicating that big funds have already recognized this as a value bottom. Recent cooperation announcements from the project team are probably no coincidence — these often serve as pre-signal indicators for market initiation.

Currently, market sentiment is extremely pessimistic, yet positive news is accumulating — this is a classic case of expectation divergence. Every time such a divergence occurs, it’s often the most profitable phase.

**Trading strategy is actually quite straightforward**

FOLKS' phased bottom formation is already complete. The final trap set by the bears has also bottomed out. From here, the key is whether it can initiate within the support zone of 4.8 to 5.0. The first target is near the middle Bollinger Band at around 5.4. If it can break through this line of defense, the upside space will truly open up.

From a strategic perspective, now is the time to enter the market in batches for spot positions. Don’t be too greedy, and don’t feel the need to catch the absolute bottom. When the main force starts to push the price up, they won’t wait for everyone to get on board. Manage your risks well — set a stop-loss below 4.7, hold your chips, and wait for the rebound momentum to unfold.