Falcon Finance just made a move that is hard to ignore.

FF jumped around 25 percent in 24 hours and reached roughly $0.159. The bigger surprise for me was the trading activity behind it. Volume exploded more than 1200 percent and reached around $111 million while market cap moved above $465 million.

But the part I keep watching is what happens after a move like this.

FF reclaimed $0.10 about a week ago and has continued pushing higher. Protocol USD inflows also reached a monthly high above $1 million.

That suggests there is real activity behind the move rather than price moving completely on thin liquidity.

The derivatives market is getting aggressive too.

Open Interest increased around 35 percent to $175 million while derivatives volume jumped 468 percent to around $172 million.

When both OI and volume rise this quickly it tells me traders are willing to take more risk.

That can help a rally continue.

It can also make the correction much sharper if the market turns.

There is already one warning signal.

Sell volume has been higher than buy volume for seven straight days. Over the last 24 hours sellers accounted for around $66.7 million while buying volume was around $64 million.

So profit taking is already happening even while price keeps moving higher.

The RSI is another reason I would not chase this candle.

It has reached around 84 which is clearly overbought. Aroon Up is also at 100 percent showing how strong the current trend has become.

For me the interesting battle is now between fresh capital and profit taking.

If inflows continue and buyers can absorb the selling then FF could eventually test the $0.20 area.

But if leveraged traders start closing positions and spot sellers become more aggressive then the first level I would watch is $0.11.

That level matters because FF already showed it could attract buyers there.

The 25 percent rally is impressive.

But after such a fast move I care less about how high FF can go next and more about whether buyers can defend the previous breakout.

A strong trend does not mean price moves straight up.

Sometimes the healthiest test comes after everyone starts believing it will.