【$ARC Signal】Short squeeze continues, 1H strong consolidation, aiming for a second pulse

$ARC The 1H timeframe has experienced nearly 30% violent rally and is now consolidating strongly at high levels. The key point is: the 1H candlestick remains firmly above the EMA20 (0.0806), and the latest 4H candlestick shows a massive bullish candle breaking through the previous consolidation range (0.078). This is a strong trend initiation signal. Although the 1H RSI reaches 85.69 indicating overbought conditions, open interest (OI) remains stable, and the funding rate is only 0.0672%, with no extreme long premium, suggesting this rally is driven by genuine buying rather than pure leverage frenzy, with potential for further upward movement after a short squeeze. The order book shows sell orders (above 0.094) significantly thicker than buy orders, which needs to be digested in the short term, but the depth imbalance of -3.59% is not severe; a pullback is an opportunity.

🎯Direction: Long (buy on pullback)

🎯Entry/Order: 0.0915 - 0.0925 (Reason: The 1H level's first retest of support zone, also the previous breakout level of 0.090 psychological barrier)

🛑Stop loss: 0.0885 (Reason: Falling below the 1H EMA50 (0.0754) and the previous breakout level of 0.089, exceeding 1.5 times ATR)

🚀Target 1: 0.0980 (Reason: Fibonacci extension at 0.618 of the rally wave (0.077-0.094))

🚀Target 2: 0.1020 (Reason: Psychological whole number level and 1.0 Fibonacci extension)

🛡Trade management:

- Position suggestion: Light position (Reason: Significant rally, extremely high volatility, high-risk game)

- Execution strategy: After reaching Target 1, reduce position by 50%, and move the remaining stop loss to the entry price (break-even). If the price cannot hold above 0.094 and falls below 0.092 again, consider exiting early.

Depth logic: The 4H timeframe has formed a clear upward structure, with EMA20 crossing above EMA50. Most importantly, during the price surge, OI remains stable rather than decreasing, ruling out the possibility of purely short covering, implying new long capital is entering. The buy/sell ratio on the 1H during the rally reaches 0.55, indicating strong active buying. The current strategy is to abandon chasing highs, patiently wait for a technical retracement on the 1H timeframe, and re-enter when bullish momentum gathers again, aiming for the second pulse.

Trade here 👇 $ARC

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