【$DENT Signal】Short squeeze continues, 1H strong consolidation followed by a second breakout

$DENT The 1H timeframe experienced a massive rally yesterday and is now entering a strong consolidation phase. The price is staying just above the EMA20_1H, refusing to undergo a deep correction. The 4H timeframe has formed a three consecutive bullish breakout pattern, with a high negative funding rate of -0.58%, yet the price remains firm and open interest (OI) is stable, indicating that the short squeeze pattern is still ongoing. Currently, the 1H RSI (70.69) is high but not yet exhausted, and the bid-ask depth ratio (bid_ask_ratio_depth: 0.94) shows strong support. This is characteristic of a strong asset, waiting for a second upward move after consolidation.

🎯Direction: Long (Long)

🎯Entry/Orders: Enter in batches around the current price of 0.000232 - 0.000235. Aggressive traders can take a small position at the current price, while conservative traders wait for a pullback to around 0.000228 to add positions.

🛑Stop Loss: 0.000218 (break below the lower boundary of the 1H consolidation zone and EMA50_1H support).

🚀Target 1: 0.000248 (previous high resistance, also the first target on the 4H timeframe).

🚀Target 2: 0.000265 (extended target based on ATR and recent volatility measurements).

🛡️Trade Management:

- Position Size: Light position up to a standard size. Due to high volatility, risk per total position should be controlled within 1-2%.

- Execution Strategy: After reaching Target 1, reduce position by 50%, and move the remaining stop loss to the entry price (break-even). If the price strongly breaks above 0.000248 and stabilizes, move the remaining stop loss up to 0.000240 to aim for Target 2. If the price drops back to the entry zone at 0.000232 without profit, exit and observe.

Order book logic: Market logic suggests “price rising combined with position volume,” currently OI is stable rather than decreasing, ruling out pure short liquidation. It appears to be a short squeeze under the protection of major players. The order book imbalance of -3.19% indicates slight selling pressure, but buy orders in the 0.00022-0.00023 range are unusually thick, forming a strong support zone. In a negative funding environment, short positions have high costs, and any small upward movement could trigger chain stop-loss buy orders, rapidly pushing the price higher. On the 1H timeframe, watch whether the price can close above 0.000235, which is a key signal to trigger the next wave.

Check real-time market 👇 $DENT

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