【$POWER Signal】Short Position + Short Squeeze Followed by High-Level Consolidation

$POWER After a single-day surge of 43%, it entered a high-level consolidation phase. The RSI( is at 79.71), indicating severe overbought conditions, but the funding rate(+0.05%) is positive and open interest remains stable. This is a typical phase of high turnover after a short squeeze, with extremely high risk if chasing the rally.

🎯Direction: Short

Market Analysis: On the 4H chart, after reaching a high of 0.415, it pulled back and is now oscillating between 0.356 and 0.377. The depth imbalance(-9.65%) shows a buildup of sell orders, but buying volume is insufficient. The EMA20(0.2699) is far below the current price, lacking effective support.

Logical Core: The surge was driven by massive volume (a single 4H candle with 539 million U traded), but subsequent volume has shrunk. The buy/sell ratio(0.51) is balanced but weak, indicating low willingness to chase higher. Open interest remains stable, but funding rates are not high, suggesting that major players have not significantly increased long positions. It appears more like retail traders FOMOing and taking profits under pressure.

Risk Control Perspective: The current price is at an absolute high. Effective support below is at the previous breakout zone of 0.288-0.302 (former high turned support). Until a healthy correction occurs (such as a pullback to EMA20 or key support levels) and the volume-price relationship is restored, any long positions are essentially top-ficking on the left side, with a very poor risk-reward ratio.

Trade here 👇 $POWER

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