【$IOTA Signal】Empty Position Waiting for Key Support Confirmation

$IOTA Continues to decline below EMA20, with deep imbalance indicating heavy selling pressure, but negative funding rates and stable open interest suggest a potential short trap is brewing.

🎯 Direction: Empty Position

Market Analysis: Price has broken below EMA20 (0.0669) and EMA50 (0.0699), clearly in a downtrend channel. Multiple rebounds on the 4H timeframe have been suppressed by sell walls (0.0655-0.0658 area), showing strong resistance above. Deep imbalance reaches 7.08%, with ask depth significantly greater than bid depth, indicating short-term selling pressure.

Hardcore Logic: The key contradiction lies in the data. Funding rates remain negative (-0.0463%), but open interest (OI) stays stable and does not decrease with the price drop. This does not align with typical main force distribution (OI decreasing), but rather suggests long leverage is being liquidated. RSI (38.01) has entered oversold territory, but the buy/sell ratio has rebounded to 0.45-0.53 in the latest candle, indicating some funds are starting to absorb the decline.

Trading Plan: Current price (~0.0653) is in a disorderly oscillation zone. Long positions lack structural support, while short positions face potential short squeeze risk (negative rate + stable OI). The core strategy is to wait for the price to test the key support area of the previous low (0.0632-0.0636), observing whether buy volume absorption and open interest increase at that level. If a divergence between volume and price signals a reversal, it would be a high-probability entry point for longs. Otherwise, continue to stay on the sidelines.

Trade here 👇 $IOTA

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