【$LUNC Signal】Short squeeze continues, strong rebound on 1H timeframe after a strong pullback

$LUNC The 1H timeframe has experienced a massive rally and is currently consolidating strongly at high levels, with the price staying close above the EMA20(1H), refusing deep retracement. The 4H timeframe has confirmed a breakout from the long-term consolidation box, indicating a bullish trend. The key point is: the negative funding rate(-0.054%) coexists with a strong price, which is a typical fuel for a short squeeze. Open interest remains high, indicating intense battle between bulls and bears, but the price is not falling, showing clear support from major players.

🎯Direction: Long (Long)

🎯Entry/Order: 0.0432 - 0.0435 (Near current price)

🛑Stop loss: 0.0418 (Break below previous 1H low and EMA50 1H support)

🚀Target 1: 0.0455 (Near previous high resistance)

🚀Target 2: 0.0478 (Extended target based on ATR measurement)

🛡️Trade management:

- Position size suggestion: Light position (Reason: intraday gains have exceeded 20%, volatility is extremely high, avoid profit-taking pressure)

- Execution strategy: After reaching 0.0455, reduce position by 50% to lock in profits, and move the stop loss of the remaining position up to the entry price of 0.0435. If the price cannot hold above 0.0440 and turns downward, consider exiting early.

Deep logic: Market depth shows buy order depth (bid_ask_ratio_depth: 1.18) is better than sell, but selling pressure above is gradually accumulating. The 1H RSI is as high as 89, in an extremely overbought state, which is a typical feature of a short squeeze, but also a risk signal, indicating any retracement could be sharp. The core logic is a battle to continue the short squeeze, using negative funding rates to force short covering and push prices higher. After entering, closely monitor whether the 1H candlestick can stay above 0.0438, which is the short-term strength/weakness dividing line.

Check real-time market 👇 $LUNC

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