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

$PROM 1H timeframe shows a strong volume breakout above EMA20 and EMA50, creating a recent new high with strong momentum. The 4H timeframe has already broken through the previous consolidation zone, forming a bullish structure. The negative funding rate is as high as -0.2126%, combined with rising prices and stable open interest, a typical short squeeze is brewing, with clear main force support.

🎯Direction: Long (Long)

🎯Entry/Order: 1.508 - 1.512 (Reason: Currently in a strong breakout zone, sell pressure is concentrated at 1.512, and the space opens after the breakout)

🛑Stop Loss: 1.485 (Reason: Falling below the 1H EMA50 support and the start of the previous large bullish candle, ATR stop loss is reasonable)

🚀Target 1: 1.560 (Reason: Previous high resistance area and 1.618 Fibonacci extension)

🚀Target 2: 1.620 (Reason: 2.618 Fibonacci extension, corresponding to the previous dense chip area)

🛡️Trade Management:

- Position size suggestion: Standard position (Reason: Multi-timeframe resonance, clear technical and capital flow logic)

- Execution strategy: After the price reaches 1.560, reduce position by 50% to lock in profits, and move the stop loss of the remaining position up to the entry price of 1.508. If the price strongly breaks through 1.560 and stabilizes, consider raising the target of the remaining position to 1.620.

Deep logic: 1H RSI reaches 71.64, indicating short-term overbought, but this is a typical feature of a strong breakout and should not be used as a reason to short. The 4H RSI is 63.11, still room for upward movement. Market depth shows sell orders accumulating around 1.512-1.520; once absorbed by buying, it will trigger a rapid rise. Open interest remains stable during the price surge, indicating not just short covering but new long funds entering. The persistent negative funding environment results in high short holding costs, fueling the short squeeze.

View real-time quotes 👇 $PROM

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