【$ZKP Signal】Short position, wait for the short squeeze momentum to exhaust

$ZKP After a single-day surge of 27%, it is currently consolidating at high levels. The current price structure is a typical cooling after a short squeeze, rather than a healthy bullish trend continuation.

🎯 Direction: Short position (NoPosition)

【Market Analysis】

The 4H timeframe shows a massive spike followed by a pullback, with the latest candlestick closing below the middle of the previous large bullish candle, indicating insufficient momentum for chasing the high. The price has broken below the short-term support formed after the surge (around 0.105).

【Logical Core】

1. Clear short squeeze characteristics: Funding rate is as high as -0.1392%, a deep negative value, combined with yesterday’s surge, indicating a typical short squeeze driven market rather than fundamental buying. Going long now carries very high risk, akin to catching a falling knife.

2. Divergence between volume, price, and open interest: During the price surge, open interest (OI) remained “Stable,” without a significant increase, suggesting the rally was mainly driven by short covering, with limited new long capital. This is an unsustainable signal.

3. Contradictory technical indicators: RSI (62.19) is in a neutral to slightly strong zone, but the price has fallen more than 18% from the high of 0.13, showing diminishing upward momentum. EMA20 (0.0909) is below the current price but has not been tested for support through a pullback.

4. Order book imbalance: Depth imbalance (-1.01%) and buy-sell ratio (0.98) indicate slightly more selling pressure than buying, and such a structure after a surge suggests high-level selling pressure is beginning to emerge.

【Trading Plan】

Currently in a chaotic phase after the surge. Conditions for going long are not met (no healthy pullback to key support, and the driving logic is a short squeeze). Conditions for shorting are also not mature (funding rate is high but negative, and OI has not decreased, RSI shows no bearish divergence).

The core strategy is to stay on the sidelines and wait for the market to choose a direction. If the price can healthy retrace to around EMA20 (0.091) and show signs of volume drying up and stopping decline, consider positioning for a long on the left side. If the price breaks below 0.098 (recent consolidation low), a deeper correction may begin, and then reassess the shorting opportunity.

Trade with me here 👇 $ZKP

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