【$SPORTFUN Signal】Pullback to go long! 1H strong consolidation, waiting for a second breakout

$SPORTFUN The 1H timeframe has experienced a massive rally and is now consolidating strongly at high levels. The 4H timeframe has confirmed a breakout of the long-term downtrend line, with a large bullish candle establishing a short-term bullish pattern. Currently, the price is trading above the 1H EMA20 (0.0399). The RSI on the 1H (73.1) is somewhat high but has not formed a bearish divergence, indicating a strong correction phase. The order book shows sell orders stacking above 0.0447, but buy depth remains decent. A volume breakout is needed to clear the floating positions. Open interest remains stable, funding rates are mildly positive, with no short squeeze risk, indicating a healthy trend continuation structure.

🎯 Direction: Long (Long)

🎯 Entry/Order: 0.0440 - 0.0445 ( Reason: 1H candlestick retesting the support zone, close to the lower boundary of the current consolidation range )

🛑 Stop-loss: 0.0425 ( Reason: Break below the previous 1H correction low of 0.04132 and ATR lower band )

🚀 Target 1: 0.0475 ( Reason: Above the previous high resistance at 0.0466, testing psychological round number )

🚀 Target 2: 0.0500 ( Reason: 1.618 Fibonacci extension of the previous wave high at 0.0465 on the 4H chart )

🛡️ Trading management:

- Position size suggestion: Light position ( Reason: Already surged over 30% intraday, extremely volatile, increased risk )

- Execution strategy: After entering, if the price quickly hits Target 1, reduce position by 50% to lock in profits, and move the remaining stop-loss to the entry price. If the price fails to break 0.0466 and falls back into the entry zone, consider closing and observing.

Deep logic: The 4H chart shows that the price has broken out of the long-term downtrend channel since January 17, with volume surging, which is a strong signal of trend reversal. The 1H after a massive volume spike is consolidating with decreasing volume, forming a typical “flag” or “triangle” pattern, preparing for the next directional move. The RSI on the 4H is as high as 78.95, indicating overbought conditions, but in a hot coin market, overbought can persist. The key is whether the 1H can hold the 0.0440-0.0435 zone; holding this area could lead to a push towards 0.05. The order book shows an imbalance of -25.41%, with slightly more sell pressure, so patience is needed to wait for active buy orders to absorb the selling.

Trade here 👇 $SPORTFUN

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