【$DOT Signal】Trend Following Long + 1H Strong Short Squeeze

$DOT The 1H timeframe is currently in a strong short squeeze phase, with prices continuously breaking through key resistance levels driven by massive volume. RSI(1H) has soared to 92, indicating extreme bullish enthusiasm. The 4H timeframe has formed a V-shaped reversal pattern, with prices firmly above all EMA lines, signaling a shift to a bullish trend. Despite overbought RSI, the momentum for short squeezing persists amid stable open interest, mild funding rates (0.01%), and strong buying depth. Refusing to pull back is a sign of strength.

🎯Direction: Long (Long)

🎯Entry/Order: 1.570 - 1.575 (Near current price, light position to test)

🛑Stop Loss: 1.540 (Break below previous 1H candle low and EMA20 support)

🚀Target 1: 1.620 (Previous high resistance zone)

🚀Target 2: 1.680 (Extension target based on ATR measurement)

🛡️Trade Management:

- Position size: Light position (1-2%). Since this is a chasing high scenario, risk-reward must be strictly controlled.

- Execution strategy: When price reaches 1.620, reduce position by 50% and move stop loss to entry price 1.575. Hold remaining position for higher targets. If price pulls back to 1.575, exit all to avoid losses.

(Depth Logic: The 4H volume shows a stair-step increase, a typical sign of sustained institutional entry. Market depth indicates large buy orders accumulated in the 1.560-1.570 range, forming immediate support. Market logic suggests “price rising, main players entering or shorts being squeezed,” combined with stable open interest, indicating this is a well-prepared short squeeze rally rather than mere retail FOMO. Although 1H RSI is overbought, in a trending market it can be tolerated. Focus on whether the price can hold above 1.570 to confirm strength. )

View real-time quotes 👇 $DOT

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