$ME experienced a daily surge of 44% and is currently consolidating around the high of 0.19. This is a typical cooling phase after a short squeeze, with a significant risk in chasing higher prices.
🎯 Direction: No position
Market Analysis: The 4-hour RSI is as high as 78.42, entering the overbought zone. Key data reveals the essence of the short squeeze: the funding rate is -0.7590%, which is extremely negative, but the open interest (OI) remains stable, indicating that shorts are still holding positions while longs have not taken significant profits. Deep imbalance at -20.63% and a buy/sell ratio of 0.66 indicate that selling pressure is significantly greater than buying pressure, with heavy selling pressure above.
Logic Hardcore: The current price is far from EMA20 (0.1514) and EMA50 (0.1500), with an excessive divergence. The last 4-hour candlestick closed down, and the buy/sell ratio is 0.47, indicating exhaustion of buying power. The ATR is 0.0097, with extremely high volatility and a significant risk of erratic price spikes.
Strategy: This is not the time for trend-following or buying on pullbacks. The price needs to make a healthy retracement to test key support (such as the previous high of 0.1735 or EMA20) and wait for the RSI to cool down to around 50. Long positions are strictly prohibited until there is evidence of sustained buying absorption in the face of deep imbalance. At the same time, with a negative funding rate and stable OI, shorting could easily lead to a secondary squeeze, which is also prohibited.
Trade here 👇$ME
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