【$DEGO Signal】Short squeeze continuation, 1H strong consolidation, targeting a secondary surge

$DEGO The 1H timeframe has experienced a historic explosive rally and is now consolidating strongly at high levels. The current price is closely hugging the 1H EMA20, with volume shrinking but the price refusing to undergo a deep correction. This is a typical sign of strong consolidation. On the 4H timeframe, a single large bullish candle has directly reversed the downward trend. Although the overall trend is not yet fully stabilized, the momentum and capital structure on the 1H chart indicate that the short squeeze may not be over. The negative funding rate is as high as -0.33%, while open interest remains stable. The price remains unusually resilient, a clear sign that the bears are being continuously squeezed. The order book shows deep buy-side support, with dense support levels below, providing a strong buffer for the price.

🎯Direction: Long

⚡Entry/Order: 0.3650 - 0.3680 (near the current price, gradually entering with small positions)

🛑Stop Loss: 0.3550

🚀Target 1: 0.3850

🚀Target 2: 0.4050

🛡️Trade Management:
- Execution Strategy: Reduce 50% of the position after reaching Target 1, and move the stop loss up to the entry price. Hold the remaining position to aim for Target 2. If the price falls below the moving stop loss, exit all positions.
Deep Logic: Over the past few hours, after a massive rally, there has been no panic selling; instead, a platform has been built at high levels. This demonstrates strong control by the main traders. Although the 1H RSI is high, it has not formed a bearish divergence, and momentum remains. Coupled with huge trading volume and stable open interest, this is not just retail chasing highs but indicates sustained capital support. The market logic suggests a possible short squeeze, and the negative funding environment increases the risk of a forced squeeze. The 0.3600-0.3650 zone below is a dense trading area resonating with the 1H EMA20 support, making it an ideal defensive position for a rebound.

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