【$VVV Signal】Short squeeze continues, 1H pullback to go long

$VVV The 1H timeframe has entered a high-level consolidation after a massive rally, with the price staying close above the EMA20(1H), indicating strong consolidation. The 4H timeframe has confirmed a breakout of the long-term downtrend, forming a V-shaped reversal. The key points are: a high negative funding rate of -1.1874% and stable open interest, which are typical of a short squeeze structure. Shorts are still being forced to cover. Although the 1H RSI is in the overbought zone, it shows no divergence, and the order book’s buy depth is concentrated, indicating strong support below.

🎯Direction: Go Long (Long)

🎯Entry/Order: 4.28 - 4.32 (Reason: 1H EMA20 dynamic support zone + dense area of previous hour’s lows)

🛑Stop Loss: 4.10 (Reason: Break below the 50% retracement of the previous rally and the bottom of the 4H large bullish candle)

🚀Target 1: 4.65 (Reason: Previous high resistance and 1.272 Fibonacci extension level)

🚀Target 2: 4.95 (Reason: 1.618 Fibonacci extension level, corresponding to a potential climax of the short squeeze)

🛡️Trade Management:

- Position size suggestion: Light position (Reason: Daily increase has exceeded 39%, volatility is high, risk first)

- Execution strategy: When the price reaches 4.65, close 50% and move the stop loss up to the entry price of 4.32. Hold the remaining position for the second target. If the price pulls back and breaks the trailing stop, exit all.

Deep logic: Market signals indicate “price rising, main players entering or shorts being squeezed out.” Combined with data: extreme negative funding rate, stable OI, buy depth imbalance(-15.81%), these three points strongly suggest the short squeeze is still ongoing. The 1H timeframe needs a healthy pullback to digest overbought conditions; this pullback is an entry opportunity. Caution points are the 1H RSI(72.59) and daily RSI(84.57), both in overbought territory. Therefore, keep positions small and strictly stop-lossed, betting on the final surge of the short squeeze sentiment.

Trade here 👇 $VVV

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