【$INJ Signal】Long! 1H strong breakout, funding squeeze in progress

$INJ The 1H timeframe has just experienced a volume breakout of the previous consolidation zone, with the price hitting a recent high and momentum being very strong. The 4H timeframe has formed a bullish engulfing pattern, indicating a trend reversal. Although RSI shows overbought conditions, in the context of a high negative funding rate (-0.2555%) and stable open interest, this appears to be a continuation of a short squeeze rather than a top.

🎯Direction: Long (Long)

🎯Entry/Order: 3.86 - 3.88 (Reason: Currently in a strong zone, retesting the 1H breakout level and EMA20_1H support )

🛑Stop Loss: 3.75 (Reason: Break below the previous 1H bullish candle low and ATR(0.1787) lower band )

🚀Target 1: 4.00 (Reason: Psychological whole number and previous daily resistance level )

🚀Target 2: 4.20 (Reason: Fibonacci 0.618 retracement level on the daily chart as resistance )

🛡️Trade Management:

- Position size suggestion: Light (Reason: Both 1H/4H RSI are overbought, increasing risk of chasing the high, but the trend remains strong )

- Execution strategy: After reaching Target 1, reduce position by 50% to lock in profits, and move the remaining stop loss to the entry price. If the price strongly breaks above 4.00 and stabilizes, consider targeting 4.20 for the remaining position.

Deep logic: Market depth shows buy orders (bids) significantly stronger than sell orders (asks), with an imbalance of 24.77%, indicating strong support below. Open interest (OI) remains stable during the sharp price rise, suggesting this is not just a short covering but possibly new long positions entering. Coupled with the high negative funding rate of -0.2555%, the cost for short positions is very high, fueling a potential short squeeze. Although the 1H RSI is high at 82, in a strong trend it may remain overbought for some time.

View real-time market 👇 $INJ

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