SQD has recently exhibited an interesting phenomenon—the contract fee rate has dropped to -1.05%. What does this mean? Simply put, shorts are continuously paying longs, creating immense psychological pressure.

From the price trend, SQD surged from a low of 0.057 to 0.068, and importantly, it held firm without dropping back down. More critically, the liquidation data in the past 24 hours shows a one-sided situation—shorts were liquidated for $925,700, while longs only for $284,300. What does this indicate? A large-scale liquidation of shorts is underway, with retail and institutional spot buying continuously absorbing sell-offs, and the short squeeze process is in progress.

Looking closely at the perpetual contract position data, the open interest (OI) has reached 22.46 million, and this number continues to grow as the price rises. This is not a sign of bearish pressure; instead, it indicates that funds are consciously increasing long positions, attempting to trigger a reversal rally.

However, there are risks. Although the trading volume of tokens like SQD has increased, they are still small to mid-cap assets. If the overall market (BTC has been weakly oscillating around 87k recently) continues to decline, SQD may follow suit. Plus, high-controlled tokens are often susceptible to manipulation by large traders, so vigilance is necessary. Fortunately, no project risks or negative news have been observed; overall, it’s just a normal pump phase.

From a technical perspective, here’s a reference plan: the current price of 0.068 can be used as an entry point, or wait for a pullback to 0.065 before entering. The first batch of profits can be taken around 0.075-0.08 (based on recent daily volatility of 10-15%). Set the stop-loss at 0.064 to prevent losses exceeding 6% of the entry price, which is also a recent support level.