2026-02-13 10:03:24

【$CLO Signal】Hold Cash | Overbought after Short Squeeze, Waiting for Healthy Pullback

$CLO Completed a violent rally on the 4H timeframe, RSI reached 84.76 entering the extremely overbought zone, but funding rate is as high as 0.1361% and open interest remains stable. This is a typical short squeeze market, not a healthy trend initiation.

Depth data shows buy-side accumulation (Bid/Ask Ratio: 1.51), but this is passive buying caused by the short squeeze, not active accumulation. Price has moved far away from EMA20 (0.0763), with a large divergence.

🎯 Direction: Hold Cash (NoPosition)

Currently, the risk of chasing longs is very high, and it’s a foolish gamble stage. Conditions for shorting are not met: although the funding rate is high, OI has not decreased, and there is no bearish divergence.

Strategy: Wait for the price to retest key support levels for a healthy reset. The primary observation zone is the 4H previous high turn support zone at 0.088-0.092, which should be accompanied by decreasing volume and RSI falling back to around 50 before considering going long.

Trade here 👇 $CLO

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