【$GUA Signal】Follow the trend long + 1H level strong breakout, funding rate short squeeze in progress

$GUA The 1H level experienced a massive bullish breakout at 23:00, with the price reaching a new high. Currently in a strong consolidation phase. The 4H level has formed three consecutive bullish candles, indicating an upward trend. The current RSI on the 1H chart is as high as 84, showing overbought conditions, but combined with a positive funding rate of 0.15%, this looks more like a short squeeze market. The shorts are being squeezed, and stable open interest indicates strong bullish confidence.

🎯Direction: Long (Long)

🎯Entry/Order: 0.2360 - 0.2380 (Reason: Pullback after strong breakout to confirm the area, close to the upper edge of the 1H candlestick body )

🛑Stop Loss: 0.2290 (Reason: Break below the previous large bullish candle low on the 1H chart and below the EMA20_1H support, indicating a possible trend reversal )

🚀Target 1: 0.2500 (Reason: Psychological whole number and short-term resistance )

🚀Target 2: 0.2650 (Reason: Based on the recent rally’s 1.618 Fibonacci extension level )

🛡️Trade Management:

- Position suggestion: Light position (Reason: RSI is already high, volatility is intense, and risk is elevated )

- Execution strategy: After the price reaches 0.2500, take profit on 50% of the position, and move the stop loss of the remaining position up to the entry price of 0.2380. If the price strongly breaks through 0.2500 and stabilizes, consider raising the target of the remaining position to 0.2650.

Deep logic: Market logic indicates a price increase, which should be judged in conjunction with open interest. Currently, open interest remains stable and has not significantly decreased due to the price rise, indicating it’s not just a short covering squeeze but also new long positions being taken. The depth of buy orders on the 1H level is decent, but caution is needed due to high RSI and positive funding rates, which could lead to a short-term pullback. The core logic is to follow the trend, entering during the initial strong breakout to continue the short squeeze trend.

View real-time market 👇 $GUA

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