【$NAORI Signal】Short Position Alert: Beware of Liquidity Traps After a Short Squeeze

$NAORI A massive bullish candle appeared on the 4-hour chart, rising 27%, but the current market shows a typical exhaustion pattern after a short squeeze.

🎯Direction: Short

Market Analysis: The price surged from 0.0209 to 0.0275 within a single candle, with trading volume increasing 20 times, but the buy/sell ratio is only 0.49, indicating that chasing the high buying pressure is not favorable. The funding rate is +0.005%, positive, but open interest remains stable, suggesting continuous inflow from non-main players.

Logical Core: This is a typical short squeeze scenario, not a trend reversal. The depth imbalance of 56.13% shows ask (sell) orders are much thinner than bid (buy) orders, yet the price has deviated significantly above the EMA20 (0.0221). The RSI is as high as 70.72, entering overbought territory, and the last 4H candle closed without holding the high point, with a clear upper shadow.

Risk Control Perspective: Under the resonance of no increase in open interest and a significant shift of funding rate to negative, chasing longs here is extremely risky. The price needs to pull back to test the previous high of 0.0214 (which has turned from resistance to support) and complete a healthy reset before confirming trend continuation. Currently, wait for the price to cool down and volume to diminish.

Trade 👇 $NAORI

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