【$NEO Signal】1H Level Oversold Rebound Play, Main Force Protecting the Market Under Negative Funding Rate

$NEO The 1H level has formed a dense trading zone between 2.66-2.68, with the price stabilizing sideways. RSI(1H) is in the oversold area at 37.33, indicating a technical rebound demand. Although the 4H level is in a downtrend channel, open interest remains stable, and the funding rate is negative. Combined with the order book buy depth accumulating in the 2.66-2.67 range, it shows that the main force is protecting the market at a critical position, and conditions for a short squeeze are initially present.

🎯Direction: Long (Long)

🎯Entry/Order: 2.675 - 2.682 (Reason: 1H EMA20 support zone & upper boundary of dense trading zone)

🛑Stop Loss: 2.655 (Reason: Break below recent 1H dense zone low & ATR lower band)

🚀Target 1: 2.725 (Reason: Previous small resistance on the 4H level & 1H EMA50 resistance)

🚀Target 2: 2.755 (Reason: Upper band of the 4H downtrend channel & Fibonacci 0.382 retracement level)

🛡️Trade Management:

- Position Size Suggestion: Light (Reason: The 4H trend is still bearish; this is a rebound play against the small trend in the context of a larger trend)

- Execution Strategy: After the price reaches Target 1, move the stop loss up to the entry price of 2.682. For the remaining position, look toward Target 2. If the price stalls around 2.725 and a bearish divergence appears on the 1H, consider taking profit early.

Depth Logic: OI remains stable, price declines but does not trigger a sharp drop in open interest, indicating non-panic selling. Under a negative funding rate environment, the price consolidates sideways at key support levels (2.66-2.68) without falling, a typical sign of bullish protection or bearish squeeze. The 1H RSI bottom divergence is brewing, and buy depth imbalance (-4.78%) shows selling pressure is temporarily exhausted, making a rebound imminent.

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