【$EGLD Signal】Oversold Rebound Trading: 1H RSI Bottom Divergence, Hidden Short Squeeze Opportunity

$EGLD The 1H timeframe entered oversold territory after a sharp decline (RSI 30.42), with the price forming a short-term support around 4.265, showing signs of stabilization. Although the 4H timeframe is still in a downtrend, open interest (OI) remains stable and did not sharply decrease with the price drop, indicating it’s not purely a main force dump, but possibly a short covering opportunity after a long squeeze. The 1-hour candlestick shows a significant increase in buy volume around 4.27, providing a basis for a short-term rebound.

🎯Direction: Long (Long)

🎯Entry/Order: 4.265 - 4.275 (Reason: Support at the lower boundary of the 1H platform, combined with dense buy orders )

🛑Stop Loss: 4.220 (Reason: Break below previous low 4.224, and ATR lower band support failure )

🚀Target 1: 4.380 (Reason: 1H EMA20 resistance and previous small platform )

🚀Target 2: 4.460 (Reason: Starting point of the 4H downtrend, key resistance level )

🛡️Trade Management:

- Position size suggestion: Light position (Reason: 4H trend remains bearish, this is a counter-trend rebound game with higher risk )

- Execution strategy: After the price reaches 4.380 (Target 1), reduce position by 50% and move stop loss to entry price 4.275. Hold the remaining position to target 2, and if the price retraces and breaks below the moving stop, exit all positions.

Deep logic: Currently, the funding rate is negative (-0.0099%), but OI remains stable. If the price can stabilize at this level, it may trigger short covering (squeeze) and drive a quick rebound. The 1H RSI shows early signs of bottom divergence (new lows in price, RSI not new lows). The order book shows a large accumulation of buy orders in the 4.26-4.27 range (over 6000 units), forming a short-term defensive wall. The key is whether the price can quickly recover above 4.30 to confirm rebound strength.

View real-time market 👇 $EGLD

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