【$POWER Signal】Short position + Short squeeze cooling after overbought

$POWER After a nearly 40% surge in a single day, the price has formed a narrow range of oscillation at high levels, which is a typical cooling phase after a short squeeze. The RSI reaches 81.47, indicating extreme overbought conditions, but the funding rate is only 0.0278% and open interest remains stable, suggesting that the current situation is not driven by excessive leverage from bulls but is a natural pause after a short squeeze. The deep imbalance of -5.92% shows that sell orders are slightly thicker, and short-term upward momentum is weakening.

🎯 Direction: Short position

The current market logic is complex: on one hand, after a sharp rise, technical indicators are severely overbought, making chasing the high very risky; on the other hand, the funding rate has not shown extreme positive premium, and open interest has not decreased, lacking signals of major players closing longs or initiating new short positions. The price is oscillating between 0.373 and 0.408, and clearer signals are needed. If the price can healthy retrace to the previous breakout level of 0.35-0.36 (also near EMA20) with declining volume, it can be seen as a secondary entry opportunity for trend bulls. Conversely, if volume increases and the price breaks below 0.35, the short squeeze phase may be over. The best strategy now is to remain patient and wait for the market to provide a new supply-demand equilibrium point.

Trade 👇 $POWER

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