【$MORPHO Signal】Long | 1H Breakout and Retest Confirmation, Short Squeeze Play Under Negative Funding Rate

$MORPHO The 1H timeframe has experienced a volume-driven rally and is currently in a strong consolidation phase. The price has stabilized above the 1H EMA20 (1.5292), and the latest 1H candlestick closed at 1.6107, indicating buying momentum. The 4H timeframe has broken through the previous consolidation upper boundary, signaling an upward trend. Key points are: negative funding rate (-0.0026%) + stable open interest + firm price, which is a typical short squeeze setup, as shorts are paying costs. Once the price moves again, a short squeeze is highly likely to trigger a cascade.

🎯Direction: Long (Long)

🎯Entry/Order: 1.6050 - 1.6100 (Reason: Dynamic support from 1H EMA20 and retest of previous breakout level )

🛑Stop Loss: 1.5800 (Reason: Break below key 1H support zone and previous 1H candle low )

🚀Target 1: 1.6600 (Reason: Resistance at previous high and initial extension at 1.618 Fibonacci level )

🚀Target 2: 1.7200 (Reason: Further extension based on recent wave height )

🛡️Trade Management:

- Position Size: Light (Reason: Intraday volatility has increased to 15%, higher risk )

- Execution Strategy: After reaching 1.6600, reduce position by 50% and lock in partial profits. Move the stop loss on remaining position to entry price 1.6100. If the price fails to hold above 1.6100 and falls back, execute a strict stop loss.

Deep Logic: Market depth shows over 2000 large orders clustered around 1.6090, forming a strong support wall. The 1H RSI is at 68.38, not overbought but indicating strength. Combining market logic signals “rising price, stable open interest,” this appears to be institutional buying support rather than just short covering. Stable open interest suggests new long positions are being established, not merely short covering. A retest of the 1H EMA20 without breaking below is an excellent second entry opportunity.

View real-time quotes 👇 $MORPHO

---

Follow me: Get more real-time analysis and insights on the crypto market! $BTC $ETH $SOL
‍#我在Gate广场过新年 #Gate广场发帖领五万美金红包