【$GUA Signal】Short squeeze continues, 1H strong breakout, chasing longs for new highs

$GUA The 1H timeframe has broken above previous highs strongly and stabilized, while the 4H timeframe has formed a series of bullish candles breaking through consolidation, indicating very strong momentum. The current price is closely following the 1H EMA20 upward, RSI on the 1H chart is as high as 83.28 indicating overbought conditions, but open interest remains stable and funding rate is high at 0.1139%, which is a typical characteristic of a short squeeze. Short sellers are forced to cover, pushing the price higher. Market depth shows strong buy-side support (bid_ask_ratio_depth: 1.76), indicating clear intent from major players to defend the price.

🎯Direction: Long (Long)

🎯Entry/Order: 0.1658 - 0.1662 (Reason: Currently in a strong zone, close to 1H EMA20 support and dense buy orders on the order book )

🛑Stop Loss: 0.1636 (Reason: Break below the previous consolidation low on the 1H timeframe and ATR (0.0041) lower band )

🚀Target 1: 0.1720 (Reason: Previous high resistance level, also near the previous high on the daily chart )

🚀Target 2: 0.1780 (Reason: Based on the recent rally’s 1.618 Fibonacci extension level )

🛡️Trade Management:

- Position size suggestion: Light (Reason: RSI is severely overbought, volatility is high, beware of quick pullbacks )

- Execution strategy: After reaching 0.1720, reduce position by 50% to lock in profits, and move the remaining stop loss up to the entry price of 0.1660 (break-even). If the price fails to hold above 0.1680 and a 1H bearish engulfing candle appears, consider exiting early.

Order book logic: Over the past 4 hours, volume and price have risen together, and open interest remains stable rather than decreasing, indicating this is not just profit-taking but driven by new funds. The extremely high positive funding rate (0.1139%) fuels the short squeeze, making short positions very costly. Although the 1H RSI is overbought, in a short squeeze environment it can remain overbought for a long time. The support zone at 0.1658-0.1660 has dense buy orders exceeding 25,000 USDT, providing a short-term buffer. The core strategy is to ride the short squeeze wave, but with a small position size and tight stop-loss, exiting immediately if buy-side depth weakens or a long upper shadow appears.

View real-time market 👇 $GUA

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