【$ENSO Signal】Short squeeze continues, 1H pullback signals long

$ENSO The 1H timeframe is consolidating strongly above the EMA20, and after a volume breakout on the 4H timeframe, it has entered a flag pattern. After experiencing a 36% surge, the price has not undergone a deep correction, and open interest (OI) remains stable. The negative funding rate (-0.12%) suggests that bears are still resisting, and the short squeeze momentum has not been fully released. Although the 1H RSI is high (75), the price refuses to decline, indicating strength. The order book shows sell orders stacking above 1.639, but buy depth is concentrated. A breakout could trigger a short squeeze.

🎯Direction: Long (Long)

🎯Entry/Order: 1.635 - 1.640 (Reason: 1H EMA20 dynamic support zone and lower boundary of the consolidation range )

🛑Stop loss: 1.615 (Reason: Break below the 1H consolidation low and the previous 1H candle body )

🚀Target 1: 1.690 (Reason: Previous high resistance and psychological level )

🚀Target 2: 1.750 (Reason: Based on the recent rally's 1.272 Fibonacci extension level )

🛡️Trade management:

- Position size recommendation: Light (Reason: Daily gains are already significant, and volatility is extremely high )

- Execution strategy: Use staggered take profits. Close 50% at Target 1, and move the stop loss of the remaining position to the entry price (break-even). Hold the remaining position for Target 2. If the price shows signs of stagnation in the 1.680-1.690 zone (e.g., long upper shadows), consider exiting all positions early.

Depth logic: This is a typical capital-driven market. Three consecutive volume-increasing bullish candles on the 4H establish the trend, while the sideways movement on the 1H is healthy profit-taking and rotation. The key point is that OI remains stable, indicating that the main longs have not exited, and the negative funding rate continues to fuel the short squeeze. Market logic suggests ‘price rising, consider whether it’s driven by main players or short covering,’ and current data more strongly supports the latter. Buy orders are densely stacked around 1.636-1.637, forming a short-term defense line.

View real-time market 👇 $ENSO

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