【$LA Signal】Long! 1H Violent Breakout, Negative Funding Rate Short Squeeze Initiated

$LA The 1H timeframe just showed an epic volume surge with a bullish candle, with the price jumping straight from 0.2126 to 0.2441, a gain of over 14%. This is a classic momentum breakout signal. A large bullish candle on the 4H chart engulfs several previous candles, shifting the trend from consolidation to strong. Currently, the negative funding rate is as high as -0.58%, with stable open interest, indicating a typical short squeeze scenario where shorts are being forced to cover.

🎯Direction: Long (Long)

🎯Entry/Order: Enter at current price 0.2420 - 0.2430 zone (Reason: Confirmed breakout with a pullback, supported by 1H EMA20)

🛑Stop Loss: 0.2350 (Reason: Break below the start of the 1H bullish candle and ATR (0.008) lower band)

🚀Target 1: 0.2550 (Reason: Previous high resistance and 1.382 Fibonacci extension)

🚀Target 2: 0.2680 (Reason: 1.618 Fibonacci extension and daily resistance level)

🛡️Trade Management:

- Position Size Suggestion: Light (Reason: 1-hour volatility is huge, risk is very high, but the reward is attractive)

- Execution Strategy: After reaching 0.2550, reduce position by 50% to lock in profits, and move the remaining stop loss up to the entry price of 0.2420. If the price strongly breaks through 0.2550 and stabilizes, consider targeting 0.2680 for the remaining position.

Deep Logic: This rally was accompanied by massive volume (nearly 79 million in 1 hour), but open interest remained stable, indicating it’s not just fresh long positions but a short squeeze caused by forced short covering. The negative funding rate is the core fuel; as long as the rate stays deeply negative, short covering pressure will persist. The 1H RSI is as high as 83, in overbought territory, but in a short squeeze scenario, overbought conditions can persist. Market depth shows decent buy support, but sell pressure above 0.244 is increasing. After the initial surge, a brief consolidation may be needed. This is a typical momentum play for hot coins—fast in, fast out, with strict stop-loss.

Check real-time market 👇 $LA

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