【$LINK Signal】Long | 1H breakout and retest confirmed, funds providing strong support

$LINK The 1H timeframe is consolidating strongly above the EMA20 (8.707), just completing a test of the previous high at 8.886 before pulling back. The 4H timeframe has broken above the downtrend line and stabilized above the EMA50 (8.776), indicating a trend reversal to bullish. The key point is: as the price rises by 5.3%, open interest (OI) remains stable, and the funding rate is negative (-0.0017%), which is a typical sign of a short squeeze—shorts are paying fees, but the price remains firm. The order book depth (Bid/Ask Ratio: 1.13) shows strong support below.

🎯Direction: Long (Long)

🎯Entry/Order: 8.80 - 8.82 (Reason: 1H EMA20 support zone and dense trading area in the order book )

🛑Stop Loss: 8.68 (Reason: Break below the start of the 4H bullish candle and EMA50 support )

🚀Target 1: 8.95 (Reason: Previous high resistance and psychological level )

🚀Target 2: 9.15 (Reason: 1.618 Fibonacci extension level, corresponding to previous chip zone )

🛡️Trade Management:

- Position size suggestion: Standard position (Reason: 4H and 1H cycle resonance, risk-reward ratio >1.5 )

- Execution strategy: After the price reaches 8.95 (Target 1), reduce position by 50%, and move the stop loss of the remaining position up to the entry price of 8.82. If the price fails to hold above 8.82 and falls back, exit immediately.

Depth logic: Market logic indicates “price rising, consider whether main force is entering or shorts are being squeezed” based on open interest. Current data points to the latter—negative funding rate + rising price + stable OI = passive short positioning, facing a short squeeze risk. The 1H RSI (65.13) still has room to rise and is not overbought. The order book imbalance at 5.98% shows light selling pressure, favorable for an upward breakout.

Trade here 👇 $LINK

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