【$WET Signal】Short Squeeze Continues, 1H Pullback Confirmation to Target Second Wave

$WET The 1H timeframe has experienced a massive rally and is now undergoing a healthy pullback correction. The current price is supported above the 1H EMA20 (0.0994). The 4H timeframe has reversed the downtrend with an epic bullish candle (+27%), forming a V-shaped reversal. The negative funding rate (-1.3164%) is very high, but open interest remains stable and the price is firm. This is a typical short squeeze characteristic, with shorts still being forced to cover, and momentum not yet exhausted.

🎯Direction: Long (Long)

🎯Entry/Order: 0.1135 - 0.1150 (Reason: 1H candlestick retraced to confirm EMA20 support, also the 0.382 Fibonacci retracement of the previous rally )

🛑Stop Loss: 0.1070 (Reason: Break below the previous consolidation low on the 1H timeframe and the 0.5 Fibonacci retracement )

🚀Target 1: 0.1220 (Reason: Near previous high resistance level )

🚀Target 2: 0.1300 (Reason: Extension based on ATR measurement and psychological round number )

🛡️Trade Management:

- Position Size: Light (Reason: Intraday volatility is extremely high, ATR values are elevated, risk is controllable and prioritized )

- Execution Strategy: When price reaches 0.1220, reduce position by 50%, and move the remaining stop loss up to the entry price of 0.1150. If the price strongly breaks through 0.1220 and stabilizes, hold the remaining position to aim for the second target.

Deep Logic: This is a textbook short squeeze. 4H volume surged dozens of times, and price skyrocketed, but open interest remained stable, indicating it’s not just bullish buying but a short squeeze. The 1H RSI (74) is high but not exhausted, leaving room for further upside. Market depth shows buy orders (Bid) far outnumber sell orders (Ask), with an imbalance of 15.14%, indicating strong support below. Negative funding rates are a nightmare for shorts and fuel for longs. The core logic is to seize the secondary pulse during the short squeeze process.

View real-time market 👇 $WET

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