【$CLO Signal】Long | Healthy Pullback After Short Squeeze Initiation

$CLO After a single-day surge of 28%, the price consolidates within a narrow range below the previous high resistance zone. This is a typical healthy reset after a short squeeze, not a top.

🎯Direction: Long

🎯Entry: 0.0865 - 0.0875

🛑Stop Loss: 0.0838 (Breaks below the 4H breakout candle low, rigid stop loss)

🚀Target 1: 0.0950

🚀Target 2: 0.1020

Market Analysis: After a massive breakout above the long-term downtrend line on the 4H timeframe, there has been no significant pullback. The current price remains above the EMA20 (0.0715), which has turned upward, confirming a short-term trend reversal.

Core Logic: This is a typical short squeeze structure. Key evidence: 1) Funding rate +0.075%, positive but not high in absolute terms, indicating shorts haven't fully surrendered and there is still squeezing room. 2) Open interest (OI) remained stable during the surge, suggesting the rise was driven by short covering and spot buying rather than excessive leverage from longs. 3) Order book depth imbalance of -12.02%, with ask side significantly thicker than bid side, yet the price remains sideways without falling, revealing hidden buy orders absorbing downward pressure.

Risk Reminder: RSI at 74 is in overbought territory, but RSI often fails during a short squeeze. The only risk is if the price breaks below the low of the previous large bullish candle (0.0815), which would indicate a failed breakout. Currently, a pullback above the breakout level presents a low-risk, high-reward entry point for longs.

Trade 👇 $CLO
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