$0G has entered a consolidation phase after experiencing over 25% violent short squeeze, with clear signs of waning momentum.
🎯 Direction: Hold Short
Market Analysis: Following a massive bullish candle on the 4H chart, two consecutive K-lines closed lower, and the buying power (Buy/Sell Ratio) has remained below 0.5, indicating a depletion of high-buying intent. The price has broken below the midpoint of the last bullish candle (~0.69), confirming the interruption of upward momentum.
Hard Logic: This is a typical short squeeze market, primarily driven by a negative funding rate (-0.1444%) leading to a short squeeze, rather than active buying by the main players. Open Interest (OI) has leveled off after a surge without continuous inflow, indicating limited new longs.
Deep Data Reveals the Truth: The order book is deeply imbalanced (-15.41%) and the buy-sell ratio (0.73) is bearish, with sell orders (Asks) significantly outweighing buy orders (Bids), creating heavy selling pressure above. Although the RSI (64.17) is not overbought, there is a divergence between price, volume, and OI, suggesting that the upward movement is unsustainable.
The current price (0.6596) is closely aligned with EMA20 (0.5773), but above it lies a dense trading zone and trapped positions. In the absence of new buying capital, the price is more likely to retest the key support below (0.61-0.62 zone) to test buying strength. At this moment, chasing longs carries extremely high risk, resembling a tail-end market.
Risk Control Perspective: ATR has reached 0.042, indicating high volatility, making stop-loss difficult to set. The profit-loss ratio fails to meet the iron rule of >1.5. The best strategy is to remain flat and observe, waiting for the market to make a clear decision at a key position.
Trade here 👇$0G
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