【$INIT Signal】Short squeeze continues, 1H flag pattern at the end of consolidation, targeting a second rally

$INIT On the 1H timeframe, after an epic surge yesterday, the price entered a high-level flag consolidation, trading strongly within the 0.104-0.113 range. A single strong bullish candle on the 4H chart established a reversal trend. Currently, the negative funding rate is (-0.1585%) and open interest remains stable, providing a basis for a continued short squeeze. The 1H RSI(76) has healthyly pulled back from overbought levels, and the EMA20(0.0947) forms a strong support. This is a typical strong-handed shakeout pattern, indicating an imminent directional move.

🎯Direction: Long (Long)

🎯Entry/Order: Enter near current price 0.1085 or break above 0.1130 to go long (Reason: Support at the lower edge of the flag / Break above the upper edge to confirm a second upward move)

🛑Stop loss: 0.1020 (Reason: Break below the lower edge of the flag and previous 1H support low, invalidating the trend)

🚀Target 1: 0.1185 (Reason: Previous high resistance level)

🚀Target 2: 0.1280 (Reason: 1.618 Fibonacci extension based on the flag pattern)

🛡️Trade management:

- Position size suggestion: Light position (Reason: Intraday volatility is extremely high, ATR reaches 0.0065)

- Execution strategy: After reaching Target 1 at 0.1185, reduce position by 50% to lock in profits, and move the remaining stop loss up to the entry price of 0.1085. If the price strongly breaks above 0.1130, consider adding a small position.

Deep logic: Market logic indicates “price rising, combined with position volume analysis,” while open interest remains stable after a surge, with no significant outflow, suggesting main funds have not exited. They may be rotating or accumulating at high levels. Order book depth shows thin walls at 0.1086-0.1087, so breaking through could trigger short covering. The overall buy-side depth on the 1H chart is solid, providing support on dips. Negative funding rates continue to fuel long positions. Overall, the bullish structure remains intact, and a breakout from the flag consolidation is more likely to move upward.

Trade here 👇 $INIT

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