【$AZTEC Signal】Short Covering Pullback, Sniping for a Second Surge

$AZTEC On the 1H timeframe, after a historic short squeeze surge, the price is consolidating strongly in the 0.0300-0.0325 range. The massive bullish candle on the 4H chart has established a bullish pattern. Currently, the 1H RSI has healthyly fallen back from overbought territory to 73. Negative funding rate (-0.48%) and stable open interest (OI Stable) indicate that the bears are still struggling to hold, and any deep correction could trigger a new short squeeze. The order book shows significant buy-side depth (depth imbalance of 6.35%), with strong support below.

🎯Direction: Long (Long)

🎯Entry/Order: 0.0300 - 0.0305 (Reason: 1H EMA20 dynamic support zone & lower boundary of consolidation range & dense buy orders stacking zone )

🛑Stop Loss: 0.0288 (Reason: Falling below the previous 1H candle low of 0.0291 and close to one ATR volatility range )

🚀Target 1: 0.0335 (Reason: Previous high resistance & 4H Fibonacci 0.618 extension level )

🚀Target 2: 0.0360 (Reason: 1.618 price extension & psychological round number )

🛡️Trade Management:

- Position suggestion: Light position (Reason: Intraday volatility has exceeded 60%, very high risk, suitable only for small positions )

- Execution strategy: After the price reaches 0.0335, reduce position by 50% to lock in profits, and move the remaining stop loss up to the entry price of 0.0305. If the price cannot hold above 0.0315 and falls back below the entry zone, exit immediately and observe.

Depth logic: This is a typical technical pullback after a short squeeze. A single 4H candle surged over 50% with massive volume, indicating clear signs of main capital entering. Although the 1H RSI is high, in a negative funding environment, the short covering pressure continues to fuel the bulls. Open interest remains stable rather than decreasing, indicating this is not just profit-taking but a switch between bulls and bears. Currently, the price consolidates in the upper half of the massive candle, representing a strong correction. Sniping the pullback offers a better risk-reward ratio.

View real-time market 👇 $AZTEC

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