【$DENT Signal】Short squeeze pullback, aiming for a second upward move

$DENT 1H timeframe experienced a 41% surge and is now undergoing a healthy pullback, with the price finding initial support near the 1H EMA20 (~0.000229). The 4H timeframe broke through the long-term downtrend with increased volume, forming a V-shaped reversal pattern, but RSI is overbought (82.5) and needs time to digest. Currently, the negative funding rate is as high as -0.4%, and open interest remains stable, indicating that the bears are still resisting, and the short squeeze logic remains unchanged. The 1H RSI (66.6) has fallen from the overbought zone, preparing for a second upward push.

🎯Direction: Long (Long)

🎯Entry/Order: 0.000229 - 0.000231 (Reason: Pullback to 1H EMA20 support + previous hour’s low area )

🛑Stop Loss: 0.000221 (Reason: Break below the start of the previous rally and the lower boundary of the dense trading zone )

🚀Target 1: 0.000245 (Reason: Previous high resistance level, also the 0.618 Fibonacci retracement level on the 4H timeframe )

🚀Target 2: 0.000255 (Reason: 1.618 price extension level, corresponding to the potential target of the short squeeze )

🛡Trade Management:

- Position size suggestion: Light (Reason: Intraday volatility is high, risk control is a priority )

- Execution strategy: After reaching Target 1, reduce position by 50% to lock in profits, and move the remaining stop loss up to the entry price. If the price cannot hold above 0.000233 (immediate resistance) and quickly falls back into the entry zone, consider exiting early.

Depth logic: After the surge, order book depth shows buy orders (0.000221-0.000231) are stacked significantly thicker than sell orders (0.000232-0.000242), with a 5% depth imbalance, indicating strong support from major players. The negative funding rate combined with rising price and stable open interest is a classic short squeeze structure. The 1H timeframe needs to stay above 0.000233 to confirm the end of the correction and initiate the second wave.

View real-time market 👇 $DENT

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