【$SOL Signal】Long! 1H Strong Breakout, Negative Funding Rate Short Squeeze Initiated

$SOL The 1H timeframe has strongly broken through and stabilized above EMA20 (86.43) and EMA50 (84.31), forming a bullish alignment. The 4H timeframe also remains above EMA20 (84.19), confirming a short-term trend reversal to bullish. Currently, the price consolidates around 88.14, with a negative funding rate (-0.0140%) and stable open interest, indicating a risk of short squeeze, a typical precursor to a short squeeze.

🎯Direction: Long (Long)

🎯Entry/Order: 87.70 - 88.00 (Reason: 1H EMA20 dynamic support zone, also the dense area of previous hour’s lows)

🛑Stop Loss: 86.80 (Reason: Break below 4H EMA20 support and previous structural lows)

🚀Target 1: 89.50 (Reason: Recent 4H resistance level)

🚀Target 2: 91.20 (Reason: Based on recent wave high Fibonacci extension of 1.618)

🛡️Trade Management:

- Position Size: Standard position (Reason: 1H and 4H trend resonance, with short squeeze logic)

- Execution Strategy: After reaching 89.50 (Target 1), reduce position by 50% to lock in profits, and move the remaining stop loss to the entry price (break-even). If the price strongly breaks through 89.50, hold the remaining position towards Target 2.

Deep Logic: 1H RSI (74.17) indicates strong momentum but not overbought, leaving room for further upside. Order book shows substantial buy depth between 87.90-88.00, providing strong support. Volume over the past 4 hours has significantly increased, with buy/sell ratio multiple times exceeding 0.5, indicating active buying. Coupled with negative funding rate and firm price, it suggests main force is defending the price or attempting a short squeeze.

Trade here 👇 $SOL

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