【$ADA Signal】1H level oversold rebound trading, watch for short squeeze under negative funding rate

$ADA The 1H level is oscillating narrowly between 0.2748-0.2773, RSI(1H) has entered the oversold zone (40.96). The 4H level is in a clear downtrend channel, but the price is approaching the lower boundary of the channel. Key signals: funding rate -0.0171% (negative), while open interest (OI) remains stable, indicating that short positions are accumulating. Once the price stabilizes, a short squeeze rebound is highly likely. The buy order depth around 0.2750 on the 1H level is unusually thick, forming an invisible support.
🎯Direction: Long (Long)
🎯Entry/Order: 0.2755 - 0.2760 (Reason: 1H EMA20(0.2780) is below, with strong support at the price level 0.2750-0.2760, betting on oversold rebound)
🛑Stop Loss: 0.2738 (Reason: Break below recent 1H low of 0.2747 and dense support at the lower end of the order book, stop loss around 0.8%)
🚀Target 1: 0.2795 (Reason: 1H EMA20 resistance and the first resistance level on the 4H chart)
🚀Target 2: 0.2820 (Reason: Previous high on the 4H chart and pressure at the upper boundary of the downtrend channel)
🛡Trade Management:
- Position size suggestion: Light (Reason: The 4H trend remains bearish. This is a rebound game against the small trend and the larger trend, with higher risk)
- Execution strategy: After reaching Target 1, reduce position by 50% and move stop loss up to entry price 0.2760. Hold the remaining position to aim for Target 2. If the price cannot stabilize above 0.2780 (1H EMA20), exit all positions.
Depth logic: The core contradiction in the current market is the divergence between negative funding rates and falling prices. Stable OI indicates it’s not a large-scale long liquidation crash but rather main force suppressing and absorbing orders. The 1H RSI bottom divergence has already appeared. If the next 1H candle closes bullish and stays above 0.2770, short-term rebound momentum will be confirmed. Market depth data shows buy orders (0.2745-0.2760) are far thicker than sell orders (0.2765-0.2780), indicating solid support below. This is a short-term sniper trade based on microstructure imbalance and negative funding rate short squeeze logic.
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