【$NIL Signal】Empty Position + Short Covering Cooling Observation
$NIL After experiencing a violent short squeeze with a single 4-hour candle surging over 100%, the market is currently cooling and consolidating at high levels. The price has broken away from the EMA20 (0.0499) support, but trading volume has sharply declined, and buying pressure is insufficient to push the price higher. This is a typical sign of momentum exhaustion after a short squeeze.
🎯Direction: Empty Position (NoPosition)
Market Analysis: The 4-hour chart shows the price violently surged from 0.04819 to 0.065, then retraced to the 0.056-0.057 range for sideways consolidation. Key data: Funding rate -0.1389% (deep negative), open interest remains stable, but the buy/sell ratio continues to stay below 0.5, indicating dominant selling pressure. The order book imbalance is as high as 20.86%, with bids far exceeding asks, yet the price cannot rise. This is a classic "false support," suggesting that the main players may be using thick buy orders to mask distribution.
Logical Analysis: This is a textbook short squeeze scenario. Negative funding rate + sharp price surge + stable open interest are typical features of a short squeeze. However, volume has plummeted after the squeeze, and RSI (64.12) has fallen back from overbought territory, indicating a lack of buying momentum.
Currently, the price is consolidating near the 50% Fibonacci retracement level of the previous rally (around 0.0566), but there is no volume confirmation of an upward move. With unclear intentions from the main players (whether accumulating or distributing) and market sentiment cooling, entering aggressively is highly risky. Wait for the price to choose a direction: a confirmed breakdown below 0.05439 (the first pullback low after the rally) indicates weakening; a volume breakout above the previous high of 0.0642 could signal a new trend. Until then, the best strategy is to stay on the sidelines.
Trade here: 👇 $NIL
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