【$SNX Signal】Pullback to Long + 1H Strong Consolidation, Negative Funding Rate Short Squeeze Expectation

$SNX The 1H timeframe experienced a massive surge yesterday and has entered a strong consolidation phase, with price oscillating within the 0.368-0.385 range to digest gains. The 4H timeframe has confirmed a breakout above the previous consolidation platform, with EMA20/50 in a bullish alignment. Currently, the negative funding rate is as high as -0.61%, open interest remains stable, and there is potential for a short squeeze, making the pullback an opportunity.

🎯Direction: Long (Long)

🎯Entry/Order: 0.365 - 0.370 (Reason: The EMA50 support zone on the 1H chart, also the lower boundary of the current consolidation zone and a dense trading area )

🛑Stop Loss: 0.355 (Reason: Break below the start of the 4H bullish breakout candle and a key psychological level )

🚀Target 1: 0.385 (Reason: Recent high resistance on the 1H chart, also the upper boundary of yesterday’s rally and consolidation )

🚀Target 2: 0.398 (Reason: Yesterday’s high and previous resistance level, with a potential move up to 0.42 after breakout )

🛡️Trade Management:

- Position Size Recommendation: Standard position (Reason: 4H trend established, 1H structure clear, favorable risk-reward ratio )

- Execution Strategy: After reaching Target 1, reduce position by 50% to lock in profits, and move the remaining stop loss up to the entry price of 0.370. If the price strongly breaks through 0.398, move the stop loss up to 0.385 to aim for greater gains.

Deep Logic: After a 16.77% surge, the price has not retraced significantly, indicating strong buying support. The 1H RSI (59.82) has healthyly pulled back from overbought territory, preparing for another upward move. Market depth shows buy orders (0.368) far exceed sell orders (0.369), with a depth imbalance of 19.71%, indicating strong support. The key point is the massive negative funding rate, which makes short positions very costly. Any stabilization or slight increase in price could trigger a wave of short covering, rapidly pushing the price higher.

View real-time market 👇 $SNX

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