【$COMP Signal】Short squeeze continues, 1H pullback confirmation, sniper for a second rally

$COMP The 1H timeframe has experienced a massive surge and is now consolidating strongly at high levels. The current price is 21.2, very close to the sell side at the order book, and the 1H candlestick has stabilized above the EMA20 (19.32). RSI (71.78) remains high but not exhausted, indicating that bullish momentum is still strong. The 4H level has broken through the long-term downtrend with increased volume, and EMA20 and EMA50 form a golden cross, confirming a trend reversal. The key point is: a negative funding rate of -1.3% and stable open interest (OI), which is a typical short squeeze structure. The short covering pressure is huge, and any slight pullback could trigger a new round of buying.

🎯Direction: Long (Long)

🎯Entry/Order: 21.05 - 21.15 (Reason: 1H EMA20 dynamic support zone resonates with dense buy orders in the order book )

🛑Stop loss: 20.44 (Reason: Falling below the previous 1H candlestick low and ATR(1.0) lower band, breaking the bullish structure )

🚀Target 1: 22.30 (Reason: Previous high resistance level, also yesterday’s breakout point )

🚀Target 2: 23.50 (Reason: 4H Fibonacci 0.618 retracement level and previous chip zone )

🛡️Trade Management:

- Position size suggestion: Standard position (Reason: 4H trend reversal confirmed, 1H structure clear, favorable risk-reward ratio )

- Execution strategy: After reaching Target 1 at 22.30, reduce position by 50%, and move the remaining stop loss to the entry price of 21.15. If the price strongly breaks through 22.30 and stabilizes, the remaining position target can be set at 23.50.

Deep logic: Market logic indicates “price rising, please consider position volume,” and currently, OI remains stable after a surge rather than declining, indicating this is not just profit-taking but new funds entering or shorts being forced to cover. The order book shows heavy buy orders (large buy orders at 21.0-21.1), while sell orders are relatively sparse, creating an upward imbalance. The 1H RSI has pulled back from overbought and is rising again, forming a fueling pattern. Overall, the short squeeze is not over; a pullback is an opportunity to enter.

Trade here 👇 $COMP

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