$SOL 1H level just broke through EMA20 (84.38) and created a new intraday high, with strong momentum. The 4H level has stabilized above EMA20 (82.77) and is testing resistance at EMA50 (85.98) upwards, with a short-term structure shifting from weak to strong. The latest 1H K-line buy ratio has reached as high as 59%, and the open interest remains stable, with prices holding firm even under negative funding rates, indicating potential short squeeze.
🎯 Direction: Long
🎯 Entry/Order: 85.70 - 85.90 (Reason: Pullback to 1H EMA20 support area and the opening price of the hourly K-line after the breakout)
🛑 Stop Loss: 84.80 (Reason: Break below the previous consolidation low point at the 1H level and ATR lower bound)
🚀 Target 1: 87.50 (Reason: Previous high resistance at the 4H level and 1.382 Fibonacci extension)
🚀 Target 2: 89.00 (Reason: 0.618 retracement level of the recent downtrend at the daily level)
🛡️ Trade Management:
- Position Suggestion: Standard position (Reason: 1H and 4H momentum resonance, risk-reward ratio > 1.5)
- Execution Strategy: After the price reaches Target 1, reduce position by 50% and move the stop loss up to the entry point (break-even point). Track the remaining position with the 1H EMA20 as a trailing stop loss. If the price fails to stabilize in the entry area and turns weak, exit immediately.
Deep Logic: The order book shows sell orders piling up above 86.00, but buy orders are also substantial in the 85.70-85.90 range, forming short-term support. The 1H RSI (71.51) is high but not overbought, still having upward space. The key is whether the price can stabilize above 85.90 within the hour, which will confirm the breakout's validity and open the channel to 87.50. Negative funding rate coupled with rising prices is a classic signal for a short squeeze to start.
Trade here 👇
$SOL ---
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