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

$ALLO After nearly a 20% surge in a single day, the price is consolidating strongly above a key breakout level. The 4H chart shows consecutive volume-driven bullish candles, which is a typical pattern of a short squeeze initiation, not a top.

🎯 Direction: Long

🎯 Entry: 0.0775 - 0.0788 ( Previous high resistance turned support zone )

🛑 Stop Loss: 0.0740 ( Break below the previous 4H candle's low, rigid stop loss )

🚀 Target 1: 0.0850 ( Previous wave high )

🚀 Target 2: 0.0920 ( Daily Fibonacci 0.618 extension level )

Market Analysis: The price has strongly broken above and stabilized above the EMA20/50, and open interest remains steady, indicating funds have not exited. The key data point is the funding rate at only 0.005%, far from dangerous levels, ruling out the possibility of major players pushing the price up to dump. Although the 4H RSI reaches 77, in a short squeeze scenario, overbought conditions can be absorbed by continuous capital inflows.

Logical Rationale: Deep imbalance reaches 7.23%, with buy volume significantly exceeding sell volume, showing large funds actively placing buy orders below the current price to accumulate. The buy/sell ratio on the 4H candles remains >1, and the last candle is volume-driven bullish, indicating the rally is driven by genuine buying. Coupled with market signals “price rising + stable open interest,” this aligns with typical main force entry characteristics.

Risk Management: Stop loss set at 0.0740, below the midpoint of the volume-driven bullish candle, with a clear invalidation point. Entry zone is close to the breakout level, with a risk/reward ratio >2.5, meeting mathematical advantage criteria. Be cautious: if the price quickly drops below 0.077 without rebound, consider observing.

Trade here 👇 $ALLO

---

Follow me: Get more real-time analysis and insights on the crypto market!