CHZ is showing impressive momentum as it pushes past the $0.054 resistance level, keeping its uptrend intact. The rally has caught traders' attention, but there's a twist worth paying attention to—on-chain metrics are flashing some overheating warnings.

When we dig into the data, the picture becomes more nuanced. The token's price strength suggests buying pressure remains solid, yet chain activity signals suggest the market might be running a bit too hot. This kind of divergence often appears when retail enthusiasm peaks, and savvy traders start watching for potential consolidation or pullback zones.

The $0.054 mark represents a key psychological level. Breaking above it demonstrates conviction from bulls, but sustainability is the real question. Historically, when on-chain indicators warn of overheating—whether that's through elevated transaction volumes, whale accumulation patterns, or extreme sentiment readings—we often see either a sharp correction or a period of sideways grinding before the next leg up.

For position management, keeping tabs on these dual signals is crucial. Price breakouts without on-chain confirmation can reverse quickly, while genuine strength typically shows up in multiple data layers. Watch for volume confirmation and whether larger holders are still accumulating or starting to take profits.

The CHZ story remains interesting, but the overheating signals suggest caution alongside optimism. This is textbook setup territory—opportunity exists, but so do risks.