$LUNC Signal】Short squeeze continues, 1H pullback is a buy



$LUNC The 1H timeframe has experienced a massive rally and is currently consolidating at high levels. The 4H timeframe has confirmed a breakout from the long-term consolidation zone, forming a strong bullish structure. The current negative funding rate (-0.0797%) contrasts sharply with the firm price, a typical characteristic of a short squeeze market, with clear main force support. Although the 1H RSI is in the overbought zone, there is no bearish divergence; a pullback is an opportunity.

🎯Direction: Long (Long)

🎯Entry/Order: 0.0440 - 0.0445 (1H EMA20 support zone)

🛑Stop Loss: 0.0428 (below the previous 4H candle low)

🚀Target 1: 0.0475 (near the previous high)

🚀Target 2: 0.0495 (intraday new high)

🛡️Trade Management:

- Position size suggestion: Light position (Reason: Daily gains have exceeded 23%, volatility is extremely high, risk and opportunity coexist )

- Execution strategy: Enter in batches when the price reaches the 0.0440-0.0445 range. Reduce 50% of the position after reaching Target 1, and move the stop loss up to the entry price. Hold the remaining position to aim for Target 2; if the 1H candle closes below EMA20, exit all positions.

Deep logic: Market depth data shows buy orders far thicker than sell orders (depth imbalance -3.28%), with strong support from large orders. Open interest (Open Interest) remains stable after the price surge, indicating it’s not purely a short squeeze; new bullish funds are entering to absorb. The 1H EMA20 (0.0397) has crossed above EMA50 (0.0377), establishing a short-term trend. The key now is to wait for a healthy 1H pullback rather than chasing highs.

View real-time market 👇 $LUNC

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