$STG Completed a violent surge on the 4-hour timeframe, currently in a high-level consolidation phase. RSI( at 71.62) indicates overbought conditions, but funding rate is -0.1898% and open interest remains stable. This is a typical short squeeze structure, with bears being squeezed out. Do not short just because RSI is high.
🎯 Direction: Long
🎯 Entry: 0.1900 - 0.1935 ( Previous high turned support zone & near 4H EMA20)
🛑 Stop loss: 0.1850 ( Break below the previous 4H bullish candle low, invalidating the logic)
🚀 Target 1: 0.2100 ( Previous high resistance)
🚀 Target 2: 0.2300 ( ATR extension target)
Market analysis: Price surged from 0.1528 to 0.2095, an increase of over 37%, with buying dominance during the move (buy/sell ratio > 0.5). Currently, depth imbalance is -14.24%, with sell orders stacked above 0.1975, forming short-term resistance. However, buy orders below are still substantial, indicating support.
Hardcore logic: This is not a distribution by the main players. The key signals are: negative funding rate + price spike + stable open interest = short squeeze. Bears are trapped at low levels, forced to close positions, pushing prices higher. A healthy bull market needs a correction to clear out floating positions and reset RSI.
Wait for the price to retrace to the key support zone (0.1900-0.1935), where the previous high turns into support and coincides with the dynamic support of EMA20. If volume diminishes and buying absorption signs appear in this zone, it is a high-probability entry point for long positions. Risk-reward ratio > 2.
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$STG Completed a violent surge on the 4-hour timeframe, currently in a high-level consolidation phase. RSI( at 71.62) indicates overbought conditions, but funding rate is -0.1898% and open interest remains stable. This is a typical short squeeze structure, with bears being squeezed out. Do not short just because RSI is high.
🎯 Direction: Long
🎯 Entry: 0.1900 - 0.1935 ( Previous high turned support zone & near 4H EMA20)
🛑 Stop loss: 0.1850 ( Break below the previous 4H bullish candle low, invalidating 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, depth imbalance is -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 open interest = 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), where the previous high turns into support and coincides with the dynamic support of EMA20. If volume diminishes and buying absorption signs appear in this zone, it is a high-probability entry point for long positions. Risk-reward ratio > 2.