$LA Signal】Pullback to Long! 1H Retracement Confirmation, Negative Funding Rate Still Expecting Short Squeeze



$LA The 1H timeframe experienced a sharp surge yesterday and is currently in a healthy retracement consolidation phase. The price retraced from the high of 0.259 to around 0.243, testing the first support area above the 1H EMA20 (0.2339). The 4H strong bullish candle confirms strength, and the current bearish candle is a normal profit-taking move, with the trend unchanged. The key point is: the funding rate is as high as -1.1159%, making short positions very costly. Any stabilization could trigger a short squeeze.

🎯Direction: Go Long (Long)

🎯Entry/Order: 0.2420 - 0.2435 (Reason: Retracement to 1H EMA20 support zone and the dense trading area of the previous 1H low )

🛑Stop Loss: 0.2380 (Reason: Break below yesterday’s breakout of the 4H large bullish candle’s midpoint, structure broken )

🚀Target 1: 0.2515 (Reason: Previous high resistance, also the previous high point on the 1H timeframe )

🚀Target 2: 0.2590 (Reason: Historical high point, space opens after breakout )

🛡️Trade Management:

- Position Size Suggestion: Light (Reason: Daily volatility has reached 17%, high risk )

- Execution Strategy: After entering, if the price quickly rises to Target 1, reduce position by 50% to lock in profits, and move the remaining stop loss to the entry price. If the price rises slowly and breaks through 0.2515, move the stop loss up to 0.2450.

Deep Logic: Although current buy depth slightly favors (bid_ask_ratio_depth: 1.50), the order book imbalance reaches 19.99%, with sparse orders above the sell side, making a breakout easy. Open interest remains stable and has not dropped significantly with the price retracement, indicating that longs are not panicking and exiting. The 1H RSI has fallen from overbought to 66.86, leaving room for another upward move. The core game-changing factor is the extremely high negative funding rate; shorts are bleeding constantly, which is the biggest fuel for a potential short squeeze.

View real-time market 👇 $LA

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