【$SONIC Signal】Long | Short squeeze continues, deep imbalance support

$SONIC surged nearly 25% within 24 hours, breaking through the recent consolidation upper boundary, currently consolidating strongly at high levels.

🎯 Direction: Long

🎯 Entry: 0.0508 - 0.0512

🛑 Stop Loss: 0.0492 ( Breaks below previous high support level, rigid stop loss )

🚀 Target 1: 0.0550

🚀 Target 2: 0.0580

Market analysis: This is a classic short squeeze scenario. Funding rate is as high as -0.2802%, indicating crowded short positions, while open interest remains stable at a high of 48 million USD, with shorts under immense pressure. The 4-hour candlestick shows continuous absorption by buyers, with decreasing pullback volume, indicating a healthy reset.

Core logic: Key data points resonate together. 1. Depth imbalance reaches 8.16%, with buy-side thickness significantly outperforming sell-side, showing strong support below and institutional buying to defend the price. 2. Price has stabilized above EMA20 (0.0437), confirming the trend. 3. RSI hits 75.87, but in a short squeeze scenario, overbought conditions are not a reversal signal but a sign of continued strength.

Risk warning: Do not short against the trend. All current data point to a bullish dominance; any pullback to key support levels (around the previous high of 0.050) presents a low-risk entry opportunity. Stop loss set at 0.0492, with a clear invalidation point, risk-reward ratio >2.5.

Trade here 👇 $SONIC

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