【$POWER Signal】Pullback to Long + Short Squeeze Rebound Play

$POWER 1H timeframe has experienced a significant rally and is now undergoing a deep correction and consolidation. The current price of 1.65 is above the 1H EMA20 (1.4329), but has broken below the 1H EMA50 (1.0949) support. On the 4H level, it is a high-level oscillation after a massive bullish candle. The key point is: the funding rate is as high as -0.987%, indicating a strong expectation of a short squeeze, and open interest (OI) remains stable, suggesting that shorts have not exited. Once the price stabilizes and rebounds, it could easily trigger a short squeeze.

🎯 Direction: Long (Long)

🎯 Entry/Orders: Enter in stages within the 1.58 - 1.62 range (Reason: retracement to the support zone in the middle of the 4H massive bullish candle, also near the 0.5 Fibonacci retracement level on the 1H timeframe)

🛑 Stop Loss: 1.45 (Reason: breaking below the previous correction low of 1.45176, which is also the bottom of the 4H bullish candle body, indicating structural damage)

🚀 Target 1: 1.90 (Reason: previous high resistance zone, also the high point before the first intraday correction)

🚀 Target 2: 2.05 (Reason: historical high resistance, a breakout would point toward higher levels)

🛡 Trading Management:

- Position Size Suggestion: Light position (Reason: extremely high volatility, daily gains exceeding 80%, very high risk)

- Execution Strategy: Use staged entries at 1.62, 1.60, and 1.58. After reaching Target 1, reduce position by 50% and move stop loss to the entry average price. The remaining position aims for Target 2. If the price cannot hold above 1.70, consider exiting early.

Deep Logic: This is a typical short squeeze game. The negative funding rate (-0.987%) means shorts have to pay high costs. After a nearly 20% correction from the high of 2.05, OI remains stable, indicating shorts are still holding. The order book shows sell orders stacking above 1.6505, but buy depth is still decent (imbalance -5.99%). The 1H RSI (65.37) has fallen from overbought into a neutral-strong zone, preparing for another upward move. The core drivers are “negative funding rate + firm price,” and once the 1H candle forms a bullish engulfing pattern, the rebound will be very rapid.

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