【$SAND Signal】Oversold Rebound Play: 1H RSI in Severe Oversold Territory, Watch for Short Covering Rebound Opportunities

$SAND The 1H timeframe just experienced a waterfall decline, with RSI dropping to an extreme oversold level of 23.51. The 4H RSI also fell to 26.76, indicating excessive short-term selling pressure. Currently, the price stabilizes around 0.0772, with order book showing sell orders stacked at 0.0774-0.0775 and support from buy orders at 0.0771-0.0772. Open interest remains stable, not dropping sharply with the price plunge, suggesting that major players are not fully unloading, possibly including passive long liquidations. The negative funding rate (-0.023%) provides a favorable environment for a short squeeze rebound.

🎯Direction: Long (Long)

🎯Entry/Order: 0.0771 - 0.0773 (Reason: Support zone in the current order book; on the 1H timeframe, need to hold steady to form a small double bottom)

🛑Stop Loss: 0.0763 (Reason: Break below previous low of 0.0764 and ATR lower band)

🚀Target 1: 0.0790 (Reason: Resistance at the previous small platform on the 1H chart and EMA20 pressure)

🚀Target 2: 0.0805 (Reason: Lower boundary of the 4H correction platform and Fibonacci 0.382 retracement level)

🛡️Trade Management:

- Position Size: Light (Reason: Overall trend remains bearish; this is a contrarian rebound, higher risk)

- Execution Strategy: When price rebounds to around 0.0785, if momentum stalls or volume diminishes, consider reducing position by 30% in advance. After reaching Target 1, reduce by 50%, and move stop loss to entry price for remaining position. If price cannot quickly break above 0.0780, consider it a weak rebound, and look to exit at breakeven or with minimal profit.

Deep Logic: This is a typical oversold rebound play. The deep oversold RSI on the 1H chart is the core driver of the technical rebound. Order book imbalance of -25.83% indicates concentrated selling pressure, but buy orders below are still substantial. If major players aim to support the price or shorts take profits, a rapid rebound can easily occur. Key points to watch: whether the price can close above 0.0775 within an hour, and whether the rebound is accompanied by increased buy depth and rising open interest.

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