【$WIF Signal】1H Oversold Rebound Trading, Short Squeeze Opportunity Under Negative Funding Rate

$WIF The 1H RSI has entered the oversold zone (38.17), and the price is testing the intraday low around 0.2267, but the 4H EMA50 (0.2302) provides a key support level, and open interest remains stable with no signs of a large-scale long liquidation. The current negative funding rate indicates crowded shorts; once a stabilization signal appears on the 1H chart, a short squeeze rebound is highly likely.

🎯Direction: Long (Long)

🎯Entry/Order: 0.2270 - 0.2280 (Reason: 1H chart stabilizes above EMA20_1h (0.2304), waiting for a small timeframe candlestick reversal signal or a direct breakout above 0.2280 resistance)

🛑Stop Loss: 0.2245 (Reason: Break below previous low 0.2261 and crossing below dense buy zone, ATR-based stop loss)

🚀Target 1: 0.2325 (Reason: 4H EMA50 resistance and previous small platform high)

🚀Target 2: 0.2360 (Reason: 1H previous high and Fibonacci 0.618 retracement level)

🛡️Trade Management:

- Position Size Suggestion: Light (Reason: Overall still within the 4H downtrend channel, representing a counter-trend bounce in a larger downtrend)

- Execution Strategy: After reaching Target 1 at 0.2325, reduce position by 50%, and move the remaining stop loss up to the entry price of 0.2275. If the price cannot effectively break above 0.2300 (1H EMA20), consider exiting early.

Deep Logic: Order book shows unusually thick buy-side depth in the 0.2250-0.2267 range, indicating clear support. Open interest remains stable while the price declines, combined with negative funding rates, forming a typical pattern of “shorts adding positions, longs holding on stubbornly,” with a short squeeze brewing. The 1H RSI shows early divergence signs, and a single strong bullish candle could confirm the rebound initiation.

View real-time market 👇 $WIF

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