【$OM Signal】Pullback on Long Entry + 4H Strong Short Squeeze Followed by Confirmation of Support

$OM The 1H timeframe is currently consolidating with decreasing volume at a key support zone (0.0545-0.0550), which is a healthy retracement after yesterday’s massive 4H short squeeze (over 35% increase). The current negative funding rate (-0.0697%) and stable open interest indicate that bears are still paying fees, and once the price stabilizes, a secondary short squeeze is highly likely. The 1H RSI (50.09) is neutral, building momentum for a rebound.

🎯Direction: Long (Long)

🎯Entry/Order: 0.0545 - 0.0550 (Reason: Support zone in the middle of the 4H bullish candle + dynamic support from 1H EMA50 + concentrated buy orders)

🛑Stop Loss: 0.0535 (Reason: Break below yesterday’s breakout high of 0.0540 and ATR(0.0037) lower band)

🚀Target 1: 0.0585 (Reason: Resistance at the high point of yesterday’s 4H upper shadow)

🚀Target 2: 0.0620 (Reason: Previous high resistance zone and 1.382 Fibonacci extension level)

🛡Trade Management:

- Position Size: Light (Reason: Although it’s a retracement entry, the overall trend is still in a rebound cycle with extremely high volatility)

- Execution Strategy: After reaching Target 1, reduce position by 50% and move stop loss to entry price. Hold the remaining position to aim for Target 2. If the price cannot quickly move away from the cost basis (e.g., 1H close below 0.0548), consider exiting early.

Deep Logic: Market logic indicates “price rising, confirm with volume,” as yesterday’s surge saw open interest (OI) increase significantly (from 1.25B to 1.75B), which is typical of institutional capital entering the market rather than just a short squeeze. The current stable OI suggests that long positions have not been heavily liquidated. Order book depth shows selling pressure concentrated above 0.0550; breaking this level would open up upside potential due to sparse resistance. The 1H bid-ask ratio depth (0.85) indicates good support below, providing a basis for long entries during a retracement.

Trade here 👇 $OM

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