【$GALA Signal】1H Oversold Rebound, Opportunity for Short Squeeze

$GALA After consecutive bearish decline on the 1H timeframe, the market enters oversold territory. RSI on the 1H chart hits 43.89. Price has broken below the EMA20 but remains close to the EMA50 (0.0037) support. The key point is that while the price is falling, open interest (OI) remains stable, indicating that this is not primarily driven by large-scale selling, but rather a passive liquidation of long positions causing a squeeze. Currently, the buy-side depth is neutral. Once the bears weaken, a short squeeze rebound is highly likely.

🎯Direction: Long (Long)

🎯Entry/Order: 0.00368 - 0.00370 (Proactively set up in the support zone around 1H EMA50)

🛑Stop Loss: 0.00362 (Break below previous low of 0.00363, structure invalidation)

🚀Target 1: 0.00385 (Previous minor resistance zone and near 1H EMA20)

🚀Target 2: 0.00395 (Fibonacci 0.382 retracement on the 4H timeframe)

🛡️Trade Management:

- Position size suggestion: Light position

- Execution strategy: If the price rebounds to 0.00378 (first resistance), consider reducing position by 30%. Move the remaining stop loss up to the entry price. After reaching Target 1, reduce position by 50%, and trail the remaining stop loss to breakeven to aim for Target 2.

Depth Logic: Market logic indicates that the decline combined with open interest suggests the move is not driven by new short positions but by long liquidation. Currently, OI is stable, indicating the decline is not primarily caused by new shorts. The RSI on the 1H chart is low, signaling a technical correction is needed. If the price stabilizes around 0.0037 and buy volume increases, it will confirm the start of a short-term rebound. This is a classic “failure of decline” followed by a long entry strategy with a favorable risk-reward ratio.

Check real-time market 👇 $GALA

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