【$WET Signal】Short squeeze pullback, aiming for a secondary surge

$WET On the 1H timeframe, after experiencing a massive rally, the price is consolidating at high levels, with initial support above the EMA20(1H). An epic bullish candle on the 4H timeframe confirms a bullish trend, currently a healthy correction. The negative funding rate is as high as -1.49%, yet the price remains firm and open interest (OI) is stable. This is a typical short squeeze structure, with bears still paying high costs, accumulating energy for a second rally.

🎯Direction: Long (Long)

🎯Entry/Order: 0.1080 - 0.1100 (Reason: 1H EMA20 support zone and the 0.382 Fibonacci retracement of the previous rally)

🛑Stop Loss: 0.1045 (Reason: Break below the previous 1H low and the 0.5 Fibonacci retracement destroys the bullish structure)

🚀Target 1: 0.1180 (Reason: Previous high resistance and the 1.272 Fibonacci extension)

🚀Target 2: 0.1250 (Reason: 1.618 Fibonacci extension)

🛡Trade Management:

- Position size suggestion: Light (Reason: Daily gains have exceeded 26%, volatility is extremely high, risk is amplified)

- Execution strategy: After reaching Target 1, reduce position by 50% to lock in profits, and move the remaining stop loss to the entry price. If the price strongly breaks through 0.1180, move the remaining stop loss to hold and aim for Target 2.

Deep logic: Volume on the 4H timeframe surges, with buyers dominating, indicating a clear signal of main force entering. Although the 1H RSI is at a high level (77.67), it may remain subdued in a strong short squeeze environment. The key point is whether the price can complete chip rotation above the 1H EMA20. Stable open interest rather than declining suggests funds are not withdrawing significantly, and the bullish pattern remains intact. Market depth is balanced, with no signs of unilateral selling pressure.

View real-time market 👇 $WET

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