【$ENSO Signal】Short squeeze continues, 1H pullback is a buying opportunity

$ENSO On the 1H timeframe, after a massive rally, the price enters a high-level consolidation, trading strongly sideways around 1.98. The 4H timeframe shows a perfect stair-step upward trend, with each candle closing above the previous high, indicating a very strong short squeeze structure. Currently, the negative funding rate is as high as -2%, but open interest remains stable and the price is holding firm. This is a typical sign of a short squeeze after a capitulation, with the main force defending the price and waiting for a new short squeeze signal.

🎯Direction: Long (Long)

🎯Entry/Order: 1.975 - 1.985 (Reason: 1H EMA20 dynamic support zone, also the lower boundary of the current consolidation range )

🛑Stop loss: 1.915 (Reason: Break below the start of the previous 1H bullish candle, invalidating the short squeeze logic )

🚀Target 1: 2.15 (Reason: Initial extension based on ATR )

🚀Target 2: 2.35 (Reason: 1H upward wave 1.618 Fibonacci extension )

🛡️Trade management:

- Position suggestion: Light position (Reason: Daily gains have exceeded 67%, volatility is extremely high, risk and reward coexist )

- Execution strategy: After the price reaches 2.15, reduce position by 50%, and move the stop loss of the remaining position up to the entry price of 1.985. If the price cannot hold above 2.0 and falls back into the entry zone, consider actively exiting.

Deep logic: Market logic indicates “price rising, main force entering or shorts capitulating.” Combining data shows that during the sharp price increase, open interest remains stable and does not decline due to negative funding rates, indicating that shorts have not surrendered on a large scale, but new funds are entering. The 1H RSI is as high as 82.64, in overbought territory, but in a short squeeze scenario, overbought conditions can persist. Market depth shows buy orders accumulating around 1.98, providing strong support. The core strategy is to bet on whether shorts will further close positions under negative funding pressure.

View real-time market 👇 $ENSO

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