【$POWER Signal】Hold a neutral stance—extreme overbought conditions amid short squeeze risk

After a single-day surge of 30%, the price is in an extremely overbought state, with RSI reaching 84.06, and the funding rate turning positive to 0.06%.

🎯 Direction: Hold a neutral stance

Market data shows that despite the new high in price, the 4H buy/sell ratio remains low at around 0.51-0.53, indicating that the rally is mainly driven by short covering (short squeeze) rather than new bullish buying. The depth imbalance is at -14.56%, with sell walls significantly thicker than buy walls, indicating heavy overhead selling pressure.

Open interest (OI) trend remains stable and has not increased in tandem with the price surge, further confirming that major players are not building large positions. The current price has deviated significantly from the EMA20 (0.3114), indicating a strong technical correction is needed.

Overall, this is a typical late-stage short squeeze scenario. The risk of going long is very high, as chasing the top can lead to being trapped at the peak; shorting against the strong trend is also risky, especially with no favorable conditions such as positive funding rates, declining OI, and RSI divergence. The best strategy is to stay neutral, wait for the price to retest key support levels (such as the 0.35-0.36 zone), or look for clear top formation.

Trade 👇 $POWER

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