【$COMP Signal】Long on the pullback! 1H strong support confirmation, negative funding rate short squeeze in progress

$COMP The 1H timeframe is experiencing a healthy pullback after a massive rally. The current price is around 20.3, which is exactly above the 1H EMA20 (18.91) and the midpoint of yesterday’s sharp rally candle (20.0-20.5), a strong support zone. The 4H timeframe has a towering pillar that directly reverses the downward trend, breaking above all moving averages, indicating a bullish trend. The key point is: the funding rate is as high as -1.42%, making short positions very costly, yet the price refuses to fall sharply. This is a typical sign of a short squeeze, and any pullback is an opportunity for bulls to add positions.

🎯Direction: Go Long (Long)

🎯Entry/Order: Buy in stages between 20.10 - 20.25 (Reason: Strong support at 1H EMA50 + 50% Fibonacci retracement of the rally candle + dense buy orders on the order book )

🛑Stop Loss: 19.70 (Reason: Falling below the low of the rally candle and the 1H support structure invalidates the short squeeze logic )

🚀Target 1: 21.70 (Reason: Previous high resistance, also the previous upper shadow high point on the 1H chart )

🚀Target 2: 22.50 (Reason: 1.272 Fibonacci extension of the 4H rally candle )

🛡Trade Management:

- Position size suggestion: Standard position (Reason: 4H and 1H cycle resonance, with clear short squeeze logic, favorable risk-reward ratio )

- Execution strategy: Enter in stages, with average price around 20.18. After reaching Target 1, reduce position by 50% and move the remaining stop loss to the entry price. If the price strongly breaks above 21.70, move the stop loss of the remaining position up to 21.00 to aim for Target 2.

Deep logic: Market logic indicates “price rising, combined with position volume,” while OI trend remains stable. The price has pulled back from the high point but OI has not decreased significantly, indicating that large-scale short covering has not yet occurred, and the potential for a short squeeze remains. The 1H RSI has healthy retraced from overbought to 66, leaving room for further upward movement. Market depth shows massive buy orders accumulated in the 20.10-20.20 range (over 5000 COMP), providing very strong support. The negative funding rate continues to be a bullish catalyst.

Trade here 👇 $COMP

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