【$STG Signal】Short squeeze in progress, waiting for a healthy pullback to go long

$STG Completed a violent rally on the 4-hour chart, currently in a high-level consolidation phase to digest gains. RSI(71.62) indicates overbought conditions, but funding rate is -0.1898% and open interest (OI) is stable. This is a typical short squeeze structure, with bears being squeezed. Do not short just because RSI is high.

🎯Direction: Long

🎯Entry: 0.1900 - 0.1935 (Previous high turned support & near 4H EMA20)

🛑Stop loss: 0.1850 (Break below the previous 4H bullish candle low, invalidates the logic)

🚀Target 1: 0.2100 (Previous high resistance)

🚀Target 2: 0.2300 (ATR extension target)

Market analysis: Price surged from 0.1528 to 0.2095, an increase of over 37%, with buying dominance during the move (buy/sell ratio > 0.5). Currently, there is an imbalance in depth at -14.24%, with sell orders stacked above 0.1975, forming short-term resistance. However, buy orders below are still substantial, indicating support.

Hardcore logic: This is not a distribution by the main players. The key signals are: negative funding rate + price spike + stable OI = short squeeze. Bears are trapped at low levels, forced to close positions, pushing prices higher. A healthy bull market needs a correction to clear out floating positions and reset RSI.

Wait for the price to retrace to the key support zone (0.1900-0.1935), which coincides with the previous high turned support and the dynamic support of EMA20. If volume diminishes and buying absorption signs appear in this zone, it is a high-probability entry point for a long position. Risk-reward ratio > 2.

Trade here 👇 $STG

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