【$COMP Signal】Short squeeze continues, dip to buy! 1H strong consolidation, negative funding rate + massive breakout

$COMP The 1H timeframe is in a strong consolidation phase after a massive rally. The price is range-bound around 21.09, digesting the epic rise from 19.04 to 22.3 in the previous hour. The 4H chart has formed three consecutive bullish candles, with a strong breakout above all EMA resistances, indicating a complete trend reversal. Currently, the negative funding rate is as high as -1.6%, combined with massive upward momentum, a typical short squeeze pattern is still ongoing. Any healthy pullback is an opportunity to enter.

🎯 Direction: Long (Long)

🎯 Entry/Order: 20.90 - 21.00 ( Reason: The 20 EMA support zone on the 1H chart, also the midpoint of the previous massive bullish candle, making it an ideal entry point for a strong pullback )

🛑 Stop Loss: 20.40 ( Reason: Falling below the 50 EMA on the 1H chart and the starting point of the previous rally indicates the short squeeze logic is invalidated )

🚀 Target 1: 22.30 ( Reason: Testing the high point resistance set in the previous hour )

🚀 Target 2: 23.80 - 24.20 ( Reason: The previous dense trading zone on the daily chart and the Fibonacci 0.618 retracement level )

🛡️ Trading Management:

- Position size suggestion: Standard position ( Reason: The 4H and 1H trends are resonating upward with strong momentum, but volatility is high )

- Execution strategy: After entering, if the price quickly hits 22.3 (Target 1), reduce position by 50% to lock in profits, and move the remaining stop loss up to the entry price of 21.00. Hold the remaining position for higher targets. If the price fails to break upward and hovers around the entry zone for more than 4 candles on the 1H chart, consider halving the position and exiting.

Deep logic: This is a textbook short squeeze. 4H volume surges, open interest remains stable, price skyrockets, but the funding rate is deeply negative, indicating many short positions are trapped and paying high costs. The order book shows buy-side depth (bid_ask_ratio_depth: 1.62) significantly better than sell-side, with clear main force support. Although the 1H RSI is high (81.45), in a strong short squeeze, RSI can remain dulled for a long time. The core driver is short covering, with open interest still high, and the pain is not over yet.

Trade here 👇 $COMP

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