【$POWER Signal】Pullback Longs + High Negative Funding Rate Short Squeeze Play

$POWER 1H timeframe is in a strong consolidation after a historic surge. The 4H candlestick shows a long upper shadow, indicating selling pressure above, but the key point is: the negative funding rate is as high as -0.5376% and open interest (OI) remains stable, which is a typical short squeeze setup. The price refuses to fall sharply, the 1H RSI (61.19) has healthyly retreated from overbought territory, and EMA20 (1.4783) forms the first dynamic support. The current consolidation is a buildup before the next rally, not a top.

🎯Direction: Long (Long)

🎯Entry/Order: 1.580 - 1.620 zone, staggered entries

🛑Stop Loss: 1.450 (breaks below the 4H lowest point, structure broken)

🚀Target 1: 1.850 (near previous high, first resistance)

🚀Target 2: 2.050 (historical high, break higher for new highs)

🛡️Trade Management:

- Position suggestion: Light position (Reason: Extremely high volatility, single-day increase of 78%, risk and reward coexist )

- Execution strategy: Use staggered entries. Once the price enters the 1.58-1.62 range, enter in two batches. After reaching Target 1, reduce position by 50% and move stop loss to entry price. Hold remaining position for Target 2. If the 1H close price falls below EMA20 (1.4783), exit all.

Deep logic: This is not just a technical rebound but a capital-driven short squeeze. Negative funding rate indicates extremely high costs for short positions, and stable OI after a price surge suggests longs are not exiting but are rotating at high levels. The depth of buy orders at 1H level (bid_ask_ratio_depth=3.58) is significantly better than sell orders, showing strong support below. Market logic indicates “price rising, consider whether main players are entering or shorts are being squeezed,” current data favors the latter. Once the 1H consolidation ends, forced short covering will trigger a secondary pulse.

View real-time quotes 👇 $POWER

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