【$AZTEC Signal】Short position, high risk of short squeeze, wait for a healthy pullback

$AZTEC After a single-day surge of 34%, the price has been consolidating at high levels, but the market structure indicates a typical short squeeze risk rather than a healthy bullish trend.

🎯 Direction: Short

Market analysis: On the 4H chart, there are consecutive long upper shadows, indicating significant selling pressure around 0.0243. Despite the large price increase, the buy/sell ratio has remained around 0.5, showing that the rally is mainly driven by short covering (short squeeze) rather than new active buying.

Core logic: Key data points to a short squeeze, not a trend reversal. 1) Funding rate at -0.0468%, a notably negative value. 2) Open interest (OI) remains stable and has not increased with the price rise, indicating no new long positions entering the market. 3) Depth imbalance at -17.04%, with ask orders far exceeding bid orders, creating heavy resistance above.

The current price is tightly hugging the first level of the order book's sell side, lacking effective support. Under the combination of negative funding rate, stable OI, and deep sell pressure, any chasing of the high is very likely to be the last buyer in a short squeeze scenario. Wait for the price to complete a healthy pullback, test key support levels, and show signs of capital inflow (OI rising + buy ratio > 1) before considering entry.

Trade 👇 $AZTEC

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