【$POWER Signal】Hold cash, wait for short squeeze and healthy correction

$POWER After a single-day surge of 47%, it formed a high-level consolidation on the 4-hour chart, which is a typical cooling-off phase after a short squeeze.

🎯 Direction: Hold cash

Market analysis: RSI reached 81.54, indicating severe overbought conditions. Funding rate is as high as 0.0622%, signaling extreme greed. However, open interest remains stable, and the order book shows a deep imbalance with ask orders far exceeding bid orders, indicating heavy selling pressure above.

Logical core: This is a typical “post-short squeeze aftermath” market. The high funding rate attracts FOMO from bulls, but there is a lack of sustained buying support. The price has moved far away from the EMA20 (0.2810), indicating a strong mean reversion demand.

Key observation: Strictly avoid chasing longs or trying to top-tick shorts here. Going long requires waiting for the price to retest key support levels (such as the 0.302-0.318 zone, the first consolidation area after yesterday’s breakout) with declining volume and RSI correcting toward 50. Shorting conditions (high funding rate + decreasing open interest + bearish divergence) have not fully aligned yet; patience is needed.

Risk management core: Current win rate is insufficient; the best strategy is to stay on the sidelines and wait for the market to provide clearer supply and demand signals.

Trade here 👇 $POWER

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