【$LUNC Signal】Pullback to Long + Short Squeeze Rebound Play

$LUNC The 1H timeframe has experienced a massive surge and is now undergoing a strong correction and consolidation. A single massive bullish candle on the 4H chart directly broke through all previous resistance levels, establishing a short-term strong trend. Currently, the price is oscillating near the midpoint of the massive candle, which is a typical area for major players to shake out weak hands. Coupled with negative funding rates, there is an excellent opportunity for a short squeeze rebound.

🎯Direction: Long (Long)

🎯Entry/Order: 0.0412 - 0.0415, staggered entries within this range

🛑Stop Loss: 0.0405 (Break below the massive bullish candle's low triggers stop loss)

🚀Target 1: 0.0438 (Near previous high resistance)

🚀Target 2: 0.0460 (Fibonacci 0.618 extension on the 4H chart)

🛡️Trade Management:

- Position Size Suggestion: Light (Reason: Extremely high volatility, daily range exceeds 20%, strict risk control needed)

- Execution Strategy: When the price reaches around 0.0430, move the stop loss up to the entry price of 0.0415. After reaching Target 1, reduce position by 50%, and trail the stop to hold the remaining position for Target 2.

Deep Logic: The 4H chart shows a massive breakout around 0.037, which is a clear signal of major capital entering the market. Although the current 1H RSI(59.76) has pulled back from overbought territory, it is not yet in a weak state. Most importantly, the funding rate remains negative at -0.0562%, and the price has not plummeted. Open interest remains stable, forming a classic “short squeeze” structure—shorts need to pay fees, but the price cannot fall further. Once buying resumes, it can trigger rapid short covering and a sharp rally. The order book depth shows thick sell orders above 0.0416, but below that, there is dense buy support in the 0.0410-0.0413 range, providing a safe cushion for a pullback to go long.

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