【$PROMPT Signal】Short Squeeze Rebound Play, 1H Pullback Confirmation

$PROMPT On the 1H timeframe, after a significant surge yesterday, the price is currently consolidating at a high level. On the 4H timeframe, the price has broken above the EMA50 (0.0465) and is moving away from it, indicating a shift from a weak to a strong medium-term trend. The current 1H candlestick is pulling back to test the EMA20 (0.0491) for initial support, and the RSI (55.49) is in a healthy zone, with no overbought signals. The key point is: the funding rate is as high as -0.128%, indicating a strong short squeeze expectation, while open interest (OI) remains stable, suggesting that shorts have not exited in large numbers, fueling the potential for continued short squeezing.

🎯Direction: Long (Long)

🎯Entry/Order: 0.0500 - 0.0505 (Reason: 1H EMA20 dynamic support zone, also the lower boundary of the current consolidation range )

🛑Stop Loss: 0.0486 (Reason: Breaking below the 1H previous low and the key support at 4H EMA50 invalidates the short squeeze logic )

🚀Target 1: 0.0545 (Reason: Previous high resistance level, also the first resistance after yesterday’s surge )

🚀Target 2: 0.0580 (Reason: Daily timeframe previous high resistance zone, 1.382 Fibonacci extension level )

🛡️Trade Management:

- Position Size: Light (Reason: Extremely volatile, high-risk play )

- Execution Strategy: After reaching 0.0545 (Target 1), reduce position by 50%, and move the stop loss of the remaining position to the entry price (break-even). If the price strongly breaks above 0.0545 and stabilizes, hold the remaining position towards Target 2.

Deep Logic: Market depth shows significant sell orders (asks) stacked above 0.051, but buy orders (bids) below 0.0507 are also substantial, creating a short-term standoff. The negative funding rate is the core driver; as long as the price does not drop sharply, short covering buy orders will continue to provide momentum. The 1H RSI is not in overbought territory, leaving room for further upside. The current strategy is to position in the support zone, betting on the second wave of the short squeeze.

View real-time market 👇 $PROMPT

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