ID tokens have recently shown strong performance, with spot prices rapidly rising from $0.07 to $0.0974, a short-term increase of 38.7%. Market enthusiasm is evident, with $6.39 million added every hour, significantly boosting market participation.

From a technical perspective, there are indeed signs of overheating. The RSI indicator has surged to 94, and the upper Bollinger Band is 14% above the middle band. Such extreme readings often indicate that short-term prices may face a correction risk. Investors chasing the rally should be cautious of sudden pullback pressures.

On-chain data is even more interesting. Long whale holdings have increased by 199%, indicating active accumulation by large investors. Meanwhile, the short side is suffering—over 79% of short positions are in loss, with some possibly forced to close positions, further driving up the price. Notably, smart money started positioning as early as $0.0838, seemingly leaving a safety cushion for this rally.

At the ecosystem level, the ID sector is performing well, and the eighth season funding plan is focusing on innovative directions such as AI proxy identities and naming services, with infrastructure continuously improving. This provides support for medium- and long-term performance.

Overall, this is a rapid rise driven by capital inflows, but the technical signals at high levels warrant attention. Short-term participants should manage risks, while medium- and long-term investors may look for bottom-building opportunities.