【$PROM Signal】1H Breakout and Pullback Confirmation, Main Force Supports the Market Under Negative Fee Rate, Sniping Short Squeeze

$PROM The 1H timeframe has experienced a volume-driven rally and is now in a healthy pullback confirmation stage. The price is consolidating around 1.445, with the 1H EMA20 (1.3965) turning into strong support. On the 4H timeframe, it has stabilized above EMA20 (1.3766) and EMA50 (1.3233), forming a bullish arrangement. The key point is: the negative funding rate (-0.0381%) combined with stable open interest indicates that shorts are still paying fees, and the price is refusing to drop sharply. This is a typical precursor to a short squeeze. The order book shows sell orders piling up above 1.45, but buy orders are densely supported between 1.44 and 1.43. The depth imbalance of -9.44% indicates limited short-term selling pressure, and the main force’s support intention is clear.

🎯Direction: Long (Long)

🎯Entry/Orders: Enter in batches within the 1.438 - 1.443 range (Reason: Pullback to 1H EMA20 support zone and the upper boundary of the previous dense trading area )

🛑Stop Loss: 1.425 (Reason: Break below 1H EMA50 and the previous structural low of 1.426, ATR stop loss range is reasonable )

🚀Target 1: 1.482 (Reason: Breakout above previous high resistance, also the recent rebound high )

🚀Target 2: 1.520 (Reason: 1.618 Fibonacci extension level, corresponding to the previous decline relay platform )

🛡️Trade Management:

- Position Size Recommendation: Light position to standard size (Reason: Trend resonance but caution against high volatility, negative fee environment increases fluctuations )

- Execution Strategy: After reaching Target 1 at 1.482, reduce position by 50% to lock in profits, and move the remaining stop loss up to the entry price of 1.443 (breakeven). If the price cannot hold above 1.455 and quickly falls back into the entry zone, consider exiting early and observing.

Depth Logic: The 4H has closed with consecutive bullish candles, buy volume has significantly increased, RSI on 1H (60.89) still has room to rise and is not overbought. Open interest (OI) remains stable during the price increase, indicating that it’s not purely a short squeeze caused by short covering, but active long positions are being accumulated. Coupled with the negative funding rate, short positions’ costs are continuously rising, and any upward price movement could trigger short covering, accelerating the rally. The core of the current strategy is to position in the support zone, betting on the secondary activation of the short squeeze.

View real-time market 👇 $PROM

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