【$LA Signal】Short squeeze continues, 1H strong consolidation, targeting a second surge

$LA The 1H timeframe entered a strong sideways consolidation after a massive rally yesterday, with the price staying close above the EMA20 (0.2264). The 4H timeframe has confirmed a breakout of the previous consolidation zone, forming a bullish structure. The key points are: a negative funding rate as high as -1.1% and stable OI, which are typical signs of a short squeeze, preventing deep retracement and indicating strong support from the main players. Although the 1H RSI is in the overbought zone, no bearish divergence appears, and the strong market allows RSI to remain subdued. The order book shows buy orders accumulating below 0.244, with selling pressure concentrated above 0.246. A breakout above this level could accelerate the move.

🎯Direction: Long (Long)

🎯Entry/Orders: Enter immediately at the current price zone of 0.2440-0.2445 (Reason: strong consolidation support at the lower boundary, close to 1H EMA20). Alternatively, set a breakout order at 0.2465 (Reason: break above the hourly consolidation high and dense sell pressure zone).

🛑Stop Loss: 0.2380 (Reason: break below the 1H consolidation low and the start of the previous high-volume candle, invalidating the short squeeze logic).

🚀Target 1: 0.2520 (Reason: previous high resistance level and a natural target after yesterday’s surge).

🚀Target 2: 0.2600 (Reason: based on ATR-derived 1.618 extension level and a psychologically significant round number).

🛡Trade Management:

- Position size suggestion: Light position up to a standard lot (Reason: extremely high volatility with large potential returns, but risk should be controlled per trade).

- Execution strategy: After reaching 0.2520, reduce position by 50%, and move the remaining stop loss up to the entry price of 0.2445 (break-even). If the price strongly breaks above 0.2520 and stabilizes, target the remaining position towards 0.2600.

Deep logic: Market logic suggests “price rising combined with position volume,” with current OI stable rather than decreasing, ruling out purely short covering. It appears to be new long capital entering the market. The funding rate is extremely negative, forcing shorts to pay fees continuously. Once the price re-accelerates, it could trigger a new round of short stop-loss orders. The 1H buy/sell ratio remains around 0.5, indicating a balanced, orderly turnover rather than pure FOMO. The support zone below 0.2400-0.2420 (the recent low after yesterday’s breakout) forms a strong support band.

View real-time market 👇 $LA

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