【$OM Signal】Short squeeze continues, 1H strong consolidation, targeting a second surge

$OM The 1H timeframe has entered a strong sideways consolidation after a massive rally, with the price staying close above the EMA20(1H), refusing a deep correction. A single massive bullish candle on the 4H chart has directly reversed the downtrend. Currently, open interest (OI) remains stable, with a high negative funding rate of -0.18%, indicating strong expectations of a short squeeze. This is a typical violent rebound structure of a hot coin; pullbacks are opportunities.

🎯Direction: Long (Long)

🎯Entry/Order: 0.0608 - 0.0612 (Reason: The dynamic support zone of the 1H EMA20 and the dense area of the previous hour’s low points)

🛑Stop Loss: 0.0595 (Reason: Breaking below the lower boundary of the 1H consolidation platform and the previous low of 0.06035, ATR stop loss range is reasonable)

🚀Target 1: 0.0639 (Reason: Testing the previous high resistance level, i.e., the previous 1H high)

🚀Target 2: 0.0665 (Reason: 4H rally wave 1.618 Fibonacci extension level)

🛡Trade Management:

- Position size suggestion: Light position (Reason: Daily volatility has exceeded 35%, risk is extremely high, suitable only for small positions)

- Execution strategy: After the price reaches 0.0639, reduce position by 50% to lock in profits, and move the remaining stop loss up to the entry price of 0.0612. If the price cannot hold above 0.0630 and falls below 0.0615, consider exiting early.

Deep logic: Market logic indicates ‘price rising, please consider position volume,’ while OI remains stable after the surge and has not significantly flowed out, indicating the bulls’ main force has not exited. Meanwhile, the order book imbalance of -2.42% shows more sell orders, but the price remains firm—typical signs of ‘selling pressure being absorbed, main force defending the price.’ The negative funding rate clearly indicates a short squeeze fuel; short covering will further push the price higher. The 1H RSI at 78, though high, has not become exhausted, leaving room for further upside. The key is that the price must hold above the short-term lifeline of 0.0608-0.0612.

Trade here 👇 (
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