【$IOTA Signal】Pullback to add longs + 1H bottom formation, negative funding rate indicates short squeeze expectation

$IOTA The 1H timeframe is oscillating narrowly between 0.0660-0.0675, forming a short-term bottom. Although the 4H timeframe is still in a downtrend channel, the price has touched recent support levels, and open interest (OI) remains stable with no signs of panic selling. The negative funding rate (-0.0117%) hints at a potential short squeeze rebound. The 1H RSI (40.68) has exited the oversold zone, and the bid-ask depth ratio (1.33) shows strong support below. This is a typical structure of slowing down in a downtrend, waiting for a trend reversal signal.

🎯 Direction: Long (Long)

⚡ Entry/Order: 0.0665 - 0.0670

🛑 Stop Loss: 0.0655

🚀 Target 1: 0.0690

🚀 Target 2: 0.0710

🛡️ Trading Management:
- Position suggestion: Light position
- Execution strategy: After reaching Target 1, reduce position by 50% and move stop loss to entry price (0.0665). Hold the remaining position to aim for Target 2. If the price retraces into the entry zone and breaks below, exit all positions.

Depth logic: Price declines but OI remains stable, indicating that large-scale liquidation by major players is unlikely, possibly passive long liquidation. The order book depth imbalance is 14.17%, with sell orders accumulating around 0.0673-0.0674. Once absorbed by buyers, a quick rebound could be triggered. The 1H EMA20 (0.0676) is the first resistance to break. Once stabilized, it will attract short-term chasing longs. Coupled with the negative funding rate, short positions have high holding costs and face short squeeze risks.

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