$COMP 1H level entered strong consolidation after a surge yesterday, with prices supported above EMA20 (19.66). After a long upper shadow on the 4H level, there was a pullback, but overall it remains in a high-level fluctuation following a large bullish candlestick, and the bullish structure is intact. The negative funding rate is as high as -0.5%, indicating potential for a short squeeze, with open interest stable showing that capital has not exited. The current 1H RSI (54) is healthy, building strength for another attack.
🎯 Direction: Long
🎯 Entry/Order: 19.65 - 19.75 (Reason: 1H EMA20 support zone + lower boundary of the consolidation range)
🛑 Stop Loss: 19.30 (Reason: Break below the midpoint of yesterday's 4H bullish candlestick and key support, ATR stop loss)
🚀 Target 1: 20.50 (Reason: Resistance zone at yesterday's high)
🚀 Target 2: 21.50 (Reason: Resistance at previous highs and 1.618 Fibonacci extension)
🛡️ Trade Management:
- Position Suggestion: Standard position (Reason: First pullback after 4H trend initiation, favorable risk-reward ratio)
- Execution Strategy: After the price touches 20.50, take 50% profit on the position and move the stop loss of the remaining position up to 19.65 (entry point). If the price surges rapidly, the stop loss can be moved below 20.00 to follow.
In-depth Logic: The order book shows that buying depth is exceptionally thick in the 19.60-19.70 range, which is a clear signal of the main force defending the price. The buy/sell transaction ratio at the 1H level turned to 0.53 in the latest candlestick, with buying starting to dominate. In a negative funding rate environment, the price refuses deep corrections, which is a typical precursor to a short squeeze. Combined with the 4H breakout from a long-term downtrend line, the level of this rebound may exceed expectations.
Trade here 👇$COMP
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