【$NIL Signal】No Position. After short squeeze, extreme overbought condition, waiting for healthy correction.

$NIL on the 4-hour timeframe, a massive bullish surge of 34% with a violent long candle. Price has broken above previous resistance, but RSI is at 80.35, entering the extremely overbought zone.

Key data reveals the nature of the short squeeze: funding rate is -0.2342% (negative), but open interest remains stable, and buy order depth is significantly thicker than sell orders (Bid/Ask Ratio 0.68), indicating shorts are being squeezed and buying strength is strong. However, the last 4H candle volume surged, with a buy/sell ratio of only 0.52, suggesting intense buying and selling activity at high levels.

🎯 Direction: No Position

Current price is at 0.0609, far away from EMA20 (0.0481) and EMA50 (0.0491). ATR indicates high intraday volatility (0.0027). Forcing long positions is extremely risky and falls into FOMO territory. Shorting conditions are not met: funding rate is negative, no signs of major players closing longs (OI stable), RSI is high but no bearish divergence.

Strategy: Wait for the price to retest key support levels for a healthy reset. The primary observation zone is the support at 0.0495-0.0480, which is also near EMA20, ideally accompanied by decreasing volume and RSI retracing to 50-60, indicating a high-probability long entry. The main risk management focus is avoiding buying at emotional peaks.

Trade here 👇 $NIL

---

Follow me: Get more real-time analysis and insights on the crypto market!

‍#我在Gate广场过新年 #当前行情抄底还是观望？ $BTC $ETH $SOL