【$SONIC Signal】Long | Healthy Pullback After Short Squeeze Initiation
$SONIC After a violent 17% surge, the price is undergoing a healthy consolidation just below a key resistance zone. The price action indicates strong buying absorption, which is a typical short squeeze continuation pattern rather than a top.
🎯Direction: Long
🎯Entry: 0.0490 - 0.0500
🛑Stop Loss: 0.0470 (Break below the previous 4H bullish candle low, rigid stop loss)
🚀Target 1: 0.0540
🚀Target 2: 0.0580
Hardcore logic: The current market is a textbook short squeeze scenario. Funding rate is as high as -1.0584%, indicating extremely high costs for short positions, while open interest (OI) remains stable at a high of 47.88 million USD, which is typical fuel for a short squeeze. The 4H RSI(74) is high, but in an environment of negative funding rates and high OI, overbought signals are invalid.
Depth data shows bid (buy) orders are significantly thicker than ask (sell) orders, with a depth imbalance of -17.54%, indicating institutional support and accumulation below. The price remains firmly above the EMA20 (0.0430), and the trend structure is intact. The current retracement volume is shrinking, representing a healthy reset, preparing for the next wave of short squeeze rally.
Trade here 👇 $SONIC
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