【$POWER Signal】Short squeeze continues, buy on dip at 1H retest!

$POWER The 1H timeframe has experienced a massive rally and is now consolidating at high levels. The current price is sideways around 1.05, and the 1H candlestick has stabilized above the EMA20 (0.9098), which is a strong bullish signal. The 4H timeframe shows an explosive upward move, with the latest 4H candlestick showing an astonishing increase, directly breaking through all previous resistance levels. The key points are: funding rate is as high as -0.4117%, yet the price remains firm, and open interest is stable. This is a typical short squeeze structure, with shorts being continuously squeezed out. Although the 1H RSI is high (78.3), in a short squeeze environment, overbought conditions can persist. The order book shows ask orders slightly thicker than bid orders, but the spread is minimal, indicating ample market liquidity and awaiting the next directional move.

🎯 Direction: Long (Long)

🎯 Entry/Order: 1.045 - 1.050 (Reason: 1H EMA20 dynamic support zone and the lower boundary of the current consolidation range, actively going long)

🛑 Stop Loss: 0.993 (Reason: Break below the start of the previous massive bullish candle on 1H, invalidating the short squeeze logic)

🚀 Target 1: 1.088 (Reason: Previous high resistance, also the intraday high)

🚀 Target 2: 1.150 (Reason: Based on the recent rally’s 1.382 Fibonacci extension level)

🛡 Trading Management:

- Position suggestion: Light position (Reason: Intraday gain has exceeded 40%, volatility is high, and risk is significant)

- Execution strategy: After reaching 1.088, reduce position by 50%, and move the stop loss of the remaining position up to the entry price of 1.050 (break-even). If the price cannot hold above 1.05 and turns downward, exit immediately.

Deep logic: This is a textbook short squeeze. Negative funding rates imply extremely high costs for short positions, and after a massive rally, the price refuses to retrace deeply, with open interest remaining stable. This indicates that major funds have not exited but are instead rotating or continuing to squeeze higher. Any retest of EMA20 on the 1H chart is an opportunity for latecomers to re-enter. Market logic suggests “price rising, combined with open interest to determine whether it’s main force entering or shorts being squeezed,” and current data more strongly supports the latter. The risk is that the daily RSI has entered overbought territory (81.19); chasing high requires extreme caution, and waiting for a pullback or strictly following planned orders is essential.

View real-time market 👇 $POWER

---

Follow me: Get more real-time analysis and insights into the crypto market! $BTC $ETH $SOL ‍#我在Gate广场过新年 #加密市场反弹