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

$VVV 1H timeframe has experienced a massive rally and is currently in a high-level consolidation phase. The 4H timeframe has formed a strong breakout structure, but the 1H RSI(73.61) indicates short-term overheating, suggesting a technical pullback is needed. The key points are: negative funding rate(-0.4051%) is extremely high and open interest remains stable, which is a typical short squeeze (Short Squeeze) breeding ground, causing the price to resist deep correction. The order book shows a weak sell wall (3.92), while buy orders are deep and support below are strong.

🎯 Direction: Long (Long)

🎯 Entry/Order: 3.85 - 3.88 range (Reason: 1H EMA20(3.525) dynamically rising + 0.382 Fibonacci retracement of the previous rally + dense support zone in the order book)

🛑 Stop Loss: 3.75 (Reason: Falling below 1H EMA50(3.044) dynamic support + below the previous structure low of 3.802)

🚀 Target 1: 4.05 (Reason: previous high resistance zone)

🚀 Target 2: 4.25 (Reason: based on the recent rally's 1.272 Fibonacci extension level)

🛡️ Trading Management:

- Position suggestion: Light position (Reason: intraday increase over 36%, high volatility, risk first)

- Execution strategy: After reaching Target 1, reduce position by 50% to lock in profits, and move the remaining stop loss up to the entry price (break-even). If the price strongly breaks through 4.2 and stabilizes, consider moving the remaining stop loss up to 4.0 to seek greater space.

Depth logic: This is not just a simple technical breakout but a capital-driven short squeeze. Negative funding rates mean extremely high costs for short positions, and after a massive rally, the price only retraces slightly while open interest remains stable, indicating shorts have not exited en masse but may be continuously drained. The 1H level is building a bullish continuation platform. Once the pullback stabilizes at the key support (3.85-3.88), buying will resume, pushing the price to test higher resistance. Market logic suggests “price rises, combined with open interest analysis,” with current stable open interest amid rising prices indicating either main force support or passive short covering.

Trade here 👇 $VVV

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