【$COS Signal】Short Squeeze Continues, 1H Strong Pullback is an Opportunity

$COS 1H level is currently in a strong consolidation at high levels after an epic rally. The 4H level's giant bullish candle has established a bullish pattern. Although RSI has entered an extremely overbought zone, stable open interest and a deep negative funding rate (-2.0%) suggest that bears are still putting up stubborn resistance, and Short Squeeze momentum has not been fully released. Current price is far from the 1H moving averages, with direct chasing carrying extreme risk, but the buy support below is abnormally thick, providing strong support for pullbacks.

🎯Direction: Long (Buy on Dips)

⚡Entry/Limit Order: 0.00145 - 0.00149

🛑Stop Loss: 0.00130

🚀Target 1: 0.00226

🚀Target 2: 0.00265

🛡️Trade Management:
- Execution Strategy: Use staged profit-taking. When price touches the first target of 0.00226, reduce position by 50% and lock in partial profits, while move stop loss of remaining position up to near entry price 0.00149. If price continues to attack the second target, exit completely near 0.00265. If price fails to pullback as expected and directly breaks below stop loss, exit decisively and wait for the next opportunity.

Deep Logic: This is a classic short squeeze scenario. Price surged over 130% in 4 hours, but open interest did not decrease, indicating this is not simple exit liquidity but rather short positions trapped and forced to close. The deep negative funding rate further exacerbates bears' holding costs. The 1H chart shows bid volume far exceeds ask volume, with extremely strong support below. While RSI shows overbought, in such extreme momentum rallies, overbought conditions may persist. The strategy core is waiting for price to pull back healthily to the 1H moving average system (around 0.0015), and once it finds support, it becomes a low-risk, high-reward second entry opportunity.

View Live Chart 👇 $COS
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