【$MORPHO Signal】Short squeeze continues, 1H pullback to go long

$MORPHO After a strong rally on the 1H timeframe, the price is consolidating at high levels. Currently, it is pulling back to test the 1H EMA20 (1.786) key support. The 4H timeframe has already formed a clear uptrend, with the price holding above all moving averages, and the latest 4H candlestick has broken previous highs with high volume, showing strong momentum. Negative funding rates (-0.0080%) combined with firm prices indicate a classic short squeeze structure, with bears being squeezed out.

🎯Direction: Long (Long)

🎯Entry/Order: 1.880 - 1.890 (Pullback to 1H EMA20 and previous high support zone)

🛑Stop Loss: 1.850 (Break below the previous 1H candle low and dense trading zone)

🚀Target 1: 1.965 (Previous high resistance, partial take profit)

🚀Target 2: 2.050 (Extended target based on ATR measurement)

🛡️Trade Management:

- Position: Standard size. Enter in batches within the 1.880-1.890 range.

- Execution Strategy: After reaching Target 1, reduce position by 50%, and move the remaining stop loss to the entry price (break-even). If the price strongly breaks through 1.965 and stabilizes, move the remaining stop loss to hold for Target 2.

Deep Logic: Market logic suggests “price rising, main players entering or bears being squeezed out.” Data shows that the 1H buy-side depth (bid_ask_ratio_depth=2.36) is significantly dominant, and order book imbalance (40.51%) indicates strong buying. Although the 1H RSI (70.64) is high, in a strong short squeeze environment, RSI stagnation is normal. Open interest (OI) remains stable, and the price surges without OI decreasing, indicating this is not profit-taking by longs but new funds entering or shorts being passively closed. The current pullback is healthy momentum digestion and an excellent opportunity for a second entry.

View real-time quotes 👇 $MORPHO

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