【$FOLKS Signal】Pullback after short squeeze, 1H level secondary upward attempt

$FOLKS At the 1H level, after a historically massive short squeeze and surge, the market is currently consolidating at high levels to digest gains. A single strong bullish candle on the 4H chart confirms a trend reversal. The current price retraces to the 1H EMA20 (1.332) for initial support, which is a typical strong correction structure. Open interest remains stable, funding rates are healthy, and the bullish pattern remains intact.

🎯Direction: Long (Long)

🎯Entry/Order: 1.525 - 1.535 (Enter near the current price, or wait for a retracement to 1.50-1.51 area to add positions)

🛑Stop Loss: 1.485 (Below the previous 1H low and the middle of the 4H bullish candle)

🚀Target 1: 1.596 (Previous high resistance)

🚀Target 2: 1.680 (Extension target based on ATR measurement)

🛡️Trade Management:

- Position size suggestion: Light (Reason: Intraday volatility has exceeded 30%, risk is very high, but trend is clear)

- Execution strategy: After reaching Target 1 at 1.596, reduce position by 50% to lock in profits, and move the remaining stop loss up to the entry price of 1.535. If the price strongly breaks above 1.60, move the remaining stop loss to break even and hold for greater gains.

Deep logic: This rally, accompanied by massive volume, is a typical sign of institutional entry. Although the 1H RSI(80.67) indicates overbought conditions, in a short squeeze environment, overbought levels can persist. The key point is whether the price can stabilize at the 1H EMA20, which is the lifeline of a strong market. Order book data shows heavy sell orders above 1.55, requiring increased volume to break through. However, open interest remains stable and not decreasing, indicating that bulls have not exited en masse but are waiting for a second surge.

View real-time market 👇 $FOLKS

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