【$POWER Signal】Long | Healthy Pullback After Short Squeeze

$POWER After a single-day surge of 47%, the price is performing a healthy pullback and chip exchange above the key breakout level.

🎯Direction: Long

🎯Entry: 0.345 - 0.353

🛑Stop Loss: 0.335 (Rigid stop loss, below the previous 4H K-line low and EMA20 support)

🚀Target 1: 0.385

🚀Target 2: 0.415

Market Analysis: The price has strongly broken through the previous high of 0.318 and stabilized above EMA20 (0.2597), which is a clear signal of an established upward trend. Although RSI (77) is high after the surge, combined with a deep negative funding rate (-0.1988%) and stable open interest (OI), this is a typical short squeeze pattern rather than pure overbought conditions. Shorting at this point is a contrarian move.

Core Logic: The current price has retraced to the Fibonacci 0.382 level (around 0.35) of the surge candle (0.288 - 0.415), which is a critical support zone for bulls. Order book depth shows significantly thicker bids compared to asks, with an imbalance rate of 15.43%, indicating institutional funds are supporting the downside.

On the 4H timeframe, volume decreases during the pullback, and the buy/sell ratio remains stable at 0.51-0.52, showing no signs of panic selling. ATR (0.0314) indicates high volatility, so stop loss should have enough room. As long as the price holds the 0.335-0.345 support zone, the bullish trend after the short squeeze is highly likely to continue, with targets towards the previous high of 0.415.

Trade here 👇 $POWER

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