【$PYTH Signal】1H Level Oversold Rebound Play, Watch for Short Squeeze Opportunities

$PYTH The 1H level experienced a volume surge and quick recovery after a dip near 0.0550, forming a potential pin bar candlestick, indicating short-term selling pressure may be exhausted. The 4H level remains in a downtrend, but the 1H RSI(48.33) has exited the oversold zone, and open interest(OI) remains stable, with no signs of panic selling, suggesting possible support from major players or a short squeeze.

🎯Direction: Long (Long)

🎯Entry/Order: 0.0558 - 0.0562 (Reason: The 1H level has stabilized above EMA20_1h(0.0564), and it is above the previous hour's candle body upper edge)

🛑Stop Loss: 0.0548 (Reason: Break below the previous low of 0.0550 on the 1H level and below ATR(0.0025) lower band)

🚀Target 1: 0.0575 (Reason: Resistance at the previous minor platform and EMA20_1h pressure level on the 4H level)

🚀Target 2: 0.0588 (Reason: The recent starting point of the 4H decline, the low of the candle at 20:00 on February 14)

🛡️Trade Management:

- Position Size Suggestion: Light (Reason: The 4H trend remains bearish; this is a counter-trend rebound play with higher risk)

- Execution Strategy: After reaching Target 1, move the stop loss to around the entry price of 0.0560 to break even. If the price strongly breaks through 0.0575 and stabilizes, consider targeting the remaining position towards 0.0588.

Deep Logic: Price fell by 5.72% but open interest remained stable, indicating it is unlikely to be a large-scale liquidation by major players, possibly a long leverage wipeout. Market depth shows bid orders far exceed ask orders, with an imbalance of 19.44%, and support levels are dense below. Negative funding rate(-0.0066%) provides a fertile ground for a short squeeze; a rebound could trigger short covering. The 1H level needs to quickly recover above 0.0564(EMA20_1h) to confirm the return of short-term momentum.

Trade here 👇 $PYTH

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