【$IOTA Signal】Pullback to go long! 1H oversold rebound trading, short squeeze opportunity under negative funding rates

$IOTA The 1H timeframe just experienced a sharp decline, RSI dropped to 32.29 into oversold territory, and the current price around 0.0659 shows signs of stabilization. Although the 4H timeframe is still in a downtrend, the latest 4H candle closed with a long lower shadow, and open interest (OI) remains stable, not decreasing significantly despite the price drop. Coupled with negative funding rates, there is a potential for a short squeeze. This is a typical oversold rebound trading point.

🎯Direction: Long (Long)

🎯Entry/Order: 0.0655 - 0.0658 (Reason: Current price zone near the previous 1H support and dense buy orders )

🛑Stop Loss: 0.0649 (Reason: Break below previous low of 0.0652 and the key level 0.0650, invalidating support )

🚀Target 1: 0.0672 (Reason: 1H EMA20 resistance and previous small consolidation platform )

🚀Target 2: 0.0682 (Reason: 1H EMA50 strong resistance, also near the 4H opening price )

🛡️Trade Management:

- Position size suggestion: Light position (Reason: The 4H trend remains bearish, this is a counter-trend rebound, higher risk )

- Execution strategy: After reaching Target 1, reduce position by 50% to lock in profits, and move the stop loss of the remaining position to the entry price of 0.0658. If the price fails to break through 0.0672 and falls back, exit at breakeven.

Deep logic: Order book shows significant buy depth in the 0.0650-0.0655 range (over 3 million in total), indicating active support. Negative funding rate (-0.0146%) continues to be unfavorable for shorts, and a rebound may trigger short covering. 1H RSI shows initial bullish divergence, and downside momentum weakens. The key is whether the price can quickly recover and hold above 0.0665, which is the first signal of a short-term shift to strength.

Check real-time market 👇 $IOTA

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