【$NAORI Signal】Short Position Alert: Beware of Liquidity Traps After a Short Squeeze

$NAORI A massive bullish candle appeared on the 4-hour chart, rising 27%, but the current market shows a typical exhaustion pattern after a short squeeze.

🎯 Direction: Short

Market Analysis: The price surged from 0.0209 to 0.0275 within a single candle, with trading volume increasing twentyfold. However, the buy/sell ratio is only 0.49, indicating that aggressive buying is not dominant. The funding rate is +0.005%, which is positive, but open interest remains stable, suggesting continued inflow from non-main players.

Logical Core: This is a classic short squeeze scenario, not a trend reversal. The depth imbalance of 56.13% shows that ask orders are much thinner than bid orders, yet the price has deviated significantly above the EMA20 (0.0221). The RSI is high at 70.72, entering overbought territory, and the last 4H candle closed without holding the high, with a clear upper shadow.

Risk Control Perspective: Without increasing open interest combined with a sharp negative shift in the funding rate, chasing longs here is extremely risky. The price needs to retest the previous high of 0.0214 (which has turned from resistance to support) and complete a healthy reset before confirming trend continuation. Currently, it’s best to wait for cooling off and declining volume.

Trade 👇 $NAORI

---

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