【$SONIC Signal】Long | Short squeeze continues, deep imbalance support

$SONIC On the 4H timeframe, after a strong breakout above EMA20 with volume, the market is consolidating. Currently, the price is trading near the intraday high.

🎯Direction: Long

🎯Entry: 0.0587 - 0.0592

🛑Stop Loss: 0.0570 (Rigid stop loss, below previous low and EMA20 support)

🚀Target 1: 0.0635

🚀Target 2: 0.0680

Market Analysis: Three consecutive volume-increasing bullish candles on the 4H chart confirm a reversal, with the latest candle showing decreasing volume on pullback, indicating healthy cooling. Key data reveals the essence of the short squeeze: funding rate at -1.0057% is highly negative, but open interest remains stable, and OI has not decreased. This is a typical short covering rally, not a main force distribution.

Logical core: Depth imbalance reaches 4.28%, buy-side volume significantly exceeds sell-side, indicating strong support below. RSI(76) is in overbought territory but fails in a short squeeze environment. Price is holding above EMA20(0.0479), with a solid trend structure. Entry zone is at the previous high turned support and dense buy orders on the order book, with a risk-reward ratio >2.

Trade here 👇 $SONIC

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