【$OP Signal】Oversold Rebound Play! 1H RSI Seriously Oversold, Early Signs of Main Force Supporting the Market

$OP After experiencing a waterfall decline on the 1H timeframe, a long lower shadow appeared around 0.1264, forming an initial sign of stabilization. The current price is oscillating narrowly around 0.13, with the 1H RSI dropping to an extreme oversold level of 21.6, indicating a strong technical correction demand. Although the 4H timeframe remains in a downtrend channel, open interest (OI) remains stable and has not decreased significantly with the sharp price drop, suggesting it is not purely a short squeeze, and there may be main players accumulating at low levels. The order book shows deep buy-side support in the 0.128-0.129 range, forming a short-term support wall.

🎯 Direction: Long (Oversold Rebound Play)

🎯 Entry/Orders: 0.1295 - 0.1305 (Reason: Lower boundary of the current consolidation zone, close to dense buy support area, favorable risk-reward ratio)

🛑 Stop Loss: 0.1260 (Reason: Falling below the previous low of 0.1264 invalidates the rebound logic)

🚀 Target 1: 0.1350 (Reason: Resistance from the previous small platform on the 1H timeframe and EMA20)

🚀 Target 2: 0.1395 (Reason: The starting point of the large bearish candle on the 4H timeframe and resistance at the previous high on the 1H)

🛡️ Trading Management:

- Position Size Suggestion: Light position (Reason: Overall trend remains bearish; this trade is a counter-trend rebound, with higher risk)

- Execution Strategy: After reaching Target 1, reduce position by 50% and move stop loss to entry price of 0.1300. Hold the remaining position to aim for Target 2. If the price stalls above 0.1320, consider exiting all positions.

Depth Logic: Funding rate is as high as -0.2569%, indicating potential fuel for a short squeeze. The volume decline followed by sideways consolidation on the 1H timeframe suggests weakening downward momentum. Although the buy/sell ratio is neutral, the order book depth imbalance of -7.31% shows concentrated sell pressure above 0.1302. A breakout above this level could trigger a quick short covering rebound. This is a high-risk, high-reward left-side trade, so strict position control is essential.

View real-time market 👇 $OP

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