【$POWER Signal】Pullback to Long + Short Squeeze Logic

$POWER 1H timeframe is currently consolidating at a high level after a historically significant surge. The 4H timeframe shows a strong foundation established by a large bullish candle, and the current 1H candlestick is trading strongly above the EMA20 (1.1344), forming a typical strong consolidation pattern. The key points are: open interest (OI) remains stable, and the funding rate is as high as -1.6244%, which is a strong short squeeze signal. Shorts are paying huge costs, and if the price refuses to undergo a deep pullback, it could easily trigger a new round of short squeeze and upward movement.

🎯Direction: Go Long (Long)

🎯Entry/Order: 1.485 - 1.495 (Reason: The Fibonacci 0.382-0.5 retracement of the previous rally on the 1H timeframe, which also serves as the strong support at the lower boundary of the current consolidation zone.)

🛑Stop Loss: 1.450 (Reason: Break below the Fibonacci 0.618 retracement and the key structural low on the 1H timeframe.)

🚀Target 1: 1.680 (Reason: Previous high resistance level, also near the 1.618 extension of the 1H rally.)

🚀Target 2: 1.850 (Reason: The 1.272 extension of the 4H rally, with space opening above.)

🛡️Trade Management:

- Position Size Suggestion: Light (Reason: The intraday increase has exceeded 100%, volatility is extremely high, and risk is the top priority.)

- Execution Strategy: When the price reaches 1.680, reduce position by 50% to lock in profits, and move the stop loss of the remaining position up to the entry price of 1.495. If the price cannot hold above 1.680 and falls back, exit all positions.

Deep Logic: This is a classic capital game. The price surged over 100%, but OI remained stable, indicating it’s not just retail FOMO; there may be major funds locking positions. The extremely negative funding rate is the core long logic, with very high costs for short positions. The 1H RSI (79.44) has pulled back from overbought territory but remains high, showing buying power has not exhausted. The order book shows buy depth (bid_ask_ratio_depth: 2.29) far exceeds sell orders, indicating strong support below. The current strategy is to abandon chasing highs, patiently wait for a healthy pullback, and use market fear at high levels to set long positions at key support levels, aiming for a secondary surge or short squeeze.

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