【$OM Signal】Short squeeze rebound continues, buy on dip at 1H support

$OM The 1H timeframe is consolidating strongly above EMA20, and a large bullish candle on the 4H confirms a reversal. Currently, after a sharp surge yesterday, the price is consolidating at high levels. With a negative funding rate (-0.1478%) and stable open interest (OI), there is potential for a short squeeze. The 1H RSI (76) is high but not overbought, and order book depth remains decent (imbalance 10.27%), indicating bulls are still in control. This is a typical high-level turnover structure after a short squeeze, and a pullback presents an opportunity.

🎯Direction: Long (Long)

🎯Entry/Order: 0.0610 - 0.0615 (Reason: 1H EMA20 dynamic support zone and dense cluster of previous hour’s lows )

🛑Stop Loss: 0.0594 (Reason: Falling below the middle of the 4H large bullish candle and previous consolidation platform, trend may fail )

🚀Target 1: 0.0639 (Reason: Previous high resistance level, also the initial target on the 4H timeframe )

🚀Target 2: 0.0660 (Reason: Resistance at the bottom of the previous daily support zone )

🛡️Trade Management:

- Position size suggestion: Light (Reason: After a significant intraday rally, volatility is high, and profit-taking pressure is present )

- Execution strategy: After reaching 0.0639, reduce position by 50%, and move the remaining stop loss up to the entry price of 0.0615. If the price strongly breaks through 0.0639 and stabilizes, hold the remaining position towards 0.0660.

Depth logic: Data reveals key signals. 1) Negative funding rate + firm price: classic short squeeze fuel, short covering will push prices higher. 2) OI stable at 187 million: no large-scale long profit-taking after the surge, indicating main players or new funds are still active. 3) Healthy 1H structure: price oscillating above EMA20, indicating strong consolidation rather than a downtrend. Market logic suggests “price rising, combined with position volume,” current conditions favor main players defending or initial short covering. The strategy is to catch the secondary entry point on pullback, aiming to continue the short squeeze trend.

Trade here 👇 $OM

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