【$ALLO Signal】Long | Healthy Pullback After Short Squeeze Initiation

After a 24% surge in 24 hours, $ALLO is consolidating strongly below the previous high resistance zone (0.0817). The 4H chart shows consecutive increasing bullish candles followed by a volume decrease and a pullback, which is a healthy reset after a short squeeze, not a top.

🎯 Direction: Long

🎯 Entry: 0.0750 - 0.0765 ( Support at the upper part of the previous 4H bullish candle body and EMA20 )

🛑 Stop Loss: 0.0717 ( Break below the previous 4H candle low, rigid stop loss )

🚀 Target 1: 0.0817 ( Previous high resistance )

🚀 Target 2: 0.0870 ( Fibonacci 1.618 extension )

Market Analysis: The price has broken out strongly and stabilized above EMA20 (0.0653) and EMA50 (0.0643), confirming a mid-term trend reversal. Although RSI (76.6) indicates overbought conditions, combined data suggest no reason to short.

Core Logic: 1. Short squeeze structure: Funding rate (0.005%) is positive but not high, open interest (OI) remains stable, indicating the rally is driven by spot buying and short covering rather than high leverage bullish frenzy, making it more sustainable. 2. Order book support: Depth imbalance (3.01%) shows buy orders significantly outweigh sell orders, and the buy/sell volume ratio (1.06) is healthy, indicating strong institutional buy support below the current price. 3. Price action: After the surge, the pullback volume shrank, and the price did not fall below 50% of the previous volume-increasing bullish candle, indicating a strong consolidation. Selling pressure has been effectively absorbed.

Key Risks: If the price cannot find support in the 0.0750-0.0765 zone and quickly falls below 0.0717, the short squeeze logic will fail, and it’s advisable to exit and observe. The current risk-reward ratio > 2.5, fitting a high-probability trading framework.

Trade here 👇 $ALLO

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