【$MERL Signal】Long! 1H strong breakout, capital inflow drives short squeeze

$MERL The 1H timeframe just experienced a massive rally, with the price strongly breaking through the previous consolidation zone and stabilizing above the EMA20, showing strong momentum. The 4H timeframe has formed a bullish engulfing pattern, confirming a trend reversal. Currently, the negative funding rate combined with the price action creates a short squeeze scenario, and stable open interest indicates that this is not just a pure short liquidation but sustained capital inflow.

🎯Direction: Long (Long)

🎯Entry/Order: 0.0710 - 0.0715 (Reason: Strong support area, retest of 1H EMA20 )

🛑Stop Loss: 0.0680 (Reason: Break below the massive rally low at 0.06703 and 4H EMA20 support )

🚀Target 1: 0.0750 (Reason: Previous high resistance area )

🚀Target 2: 0.0800 (Reason: 1.618 Fibonacci extension level )

🛡Trade Management:

- Position size suggestion: Light position (Reason: Daily increase has exceeded 26%, volatility is extremely high )

- Execution strategy: Reduce position by 50% after reaching Target 1, and move stop loss up to entry level 0.0715. Hold remaining position for Target 2, and if the price falls below the trailing stop, exit decisively.

Deep logic: 1H RSI reaches 82, indicating overbought but momentum not exhausted, common in Hot Coins. Market depth shows sell orders stacking above 0.0717, but buy orders are also substantial around 0.0714, forming support. 4H volume surges, with buy order ratio reaching 56% during the rally, indicating main force activity. In a negative funding rate environment, the price rises despite the environment, a classic short squeeze signal, with shorts facing forced liquidation pressure.

Trade here 👇 $MERL

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