【$ESP Signal】Short Squeeze Relay! 1H Strong Breakout, Negative Funding Rate + Increasing OI, Targeting Main Uptrend

$ESP The 1H timeframe is strongly trading above EMA20 (0.0770), just a large bullish candle (+5.5%) with high volume breaking through the 0.09 level, creating a new intraday high. Although the 4H timeframe is experiencing a rebound after a downtrend, the 1H momentum is very strong, with RSI reaching 83.94 indicating overbought conditions but not yet exhausted. Combined with a -0.15% negative funding rate and stable open interest (OI), a typical short squeeze structure is forming. The order book buy depth (bid_ask_ratio_depth: 1.26) is dominant, but selling pressure is beginning to accumulate in the 0.092-0.094 area above, requiring a quick breakout.

🎯Direction: Long (Long)

🎯Entry/Order: 0.0915 - 0.0920 (Reason: Pullback after breakout confirms support zone, close to the upper part of the 1H bullish candle )

🛑Stop Loss: 0.0885 (Reason: Break below the previous 1H candle low and EMA20 dynamic support )

🚀Target 1: 0.0950 (Reason: Previous rebound high and psychological level at an integer )

🚀Target 2: 0.0990 (Reason: 1.618 Fibonacci extension based on recent volatility measurement )

🛡️Trade Management:

- Position Size Suggestion: Light (Reason: Daily increase already over 50%, volatility is extremely high, risk amplified )

- Execution Strategy: If the price quickly reaches Target 1 after entry, reduce position by 50% to lock in profits, and move the remaining stop loss to the entry price. If the price consolidates in the entry zone for more than 2 consecutive 1H candles without making a new high, consider exiting early.

Deep Logic: The price surged 51% while OI remained stable, indicating it’s not just a pure short squeeze but possibly new long funds entering to support the price. The persistent negative funding rate continues to attract arbitrage buy orders, increasing short squeeze potential. The key is whether trading volume can continue to expand above 0.092; if buy depth (depth_imbalance: 11.51%) remains strong, the price may attempt to push towards 0.10. Beware of a rapid correction after RSI becomes severely overbought; always tighten your stop loss.

Check real-time market 👇 $ESP

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