【$UAI Signal】Short squeeze correction followed by a move up, 1H level strong pullback confirmation

$UAI After experiencing a massive rally at the 1H level, the price is now undergoing a healthy pullback confirmation. Currently trading at 0.2828, the 1H EMA20 (0.2684) provides dynamic support, and the 4H EMA20 (0.2497) and EMA50 (0.2435) have formed a bullish alignment, indicating an upward trend. The key point is: the 1H RSI (59.92) has pulled back from the overbought zone but has not entered the weak zone, indicating a strong correction. Market depth shows a large accumulation of sell orders around 0.2600 (416K), which is a resistance wall set by the main force. Once broken, it will trigger a short squeeze. Open interest remains stable, and the funding rate of 0.0754% is positive but not overheated, indicating healthy bullish sentiment with room to rise.

🎯Direction: Long (Long)

🎯Entry/Orders: 0.2680 - 0.2720 staggered entries (Reason: pullback to 1H EMA20 support zone and dense previous hourly candle area)

🛑Stop loss: 0.2550 (Reason: breaking below 4H EMA50 and previous low support, ATR stop loss approximately 1.5 times)

🚀Target 1: 0.3000 (Reason: previous high psychological level and hourly resistance)

🚀Target 2: 0.3280 (Reason: breaking previous high, aiming at 1.618 Fibonacci extension level)

🛡️Trade management:

- Position suggestion: Light position (Reason: intraday volatility is extremely high, ATR reaches 0.0166, strict risk control needed)

- Execution strategy: After reaching 0.3000, reduce position by 50% to lock in profits, and move the remaining stop loss up to the entry price of 0.2720. If the price strongly breaks through the 0.2600 sell wall, consider adding a small position on pullback confirmation.

Depth logic: Market logic indicates “price rising, combined with position volume,” current open interest is stable, and the price has pulled back from the high without a corresponding sharp drop in open interest, suggesting it’s not a panic sell but profit-taking and shakeout. The order book imbalance of -36.83% shows slightly heavier selling pressure, but the buy depth below is still decent, especially with dense buy orders in the 0.256-0.258 range, providing a buffer for downside. The 1H buy orders are gradually absorbing selling pressure during the pullback, waiting for the next momentum. This is a typical “rise-shakeout-rise” scenario; sniping the pullback offers a better risk-reward ratio.

View real-time market 👇 $UAI

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