【$ESP Signal】Long! Strong breakout on 1H timeframe followed by a pullback, negative funding rate indicates a short squeeze setup

$ESP The 1H timeframe is consolidating strongly above the EMA20, just experienced a volume-driven rally from 0.077 to 0.087. The current price hovers around 0.0846, which is a healthy pullback after breaking previous highs. The 4H timeframe has already stabilized above EMA20 (0.0771) with volume increasing and a bullish close, confirming a short-term uptrend. Key clues: funding rate at -0.1%, but the price remains firm and open interest (OI) is stable. This is a typical sign of a short squeeze, with shorts paying high fees. If buying pressure continues, a short squeeze is highly likely.

🎯Direction: Long (Long)

🎯Entry/Order: 0.0842 - 0.0845 (Reason: 1H EMA20 dynamic support zone + previous rally’s 0.382 Fibonacci retracement level )

🛑Stop Loss: 0.0820 (Reason: Break below 1H EMA50 support + low of the previous hour’s candlestick body )

🚀Target 1: 0.0878 (Reason: Previous high resistance level, also the high point of the 4H upper shadow )

🚀Target 2: 0.0910 (Reason: 1.618 extension based on ATR measurement )

🛡Trade Management:

- Position size suggestion: Light position (Reason: Hot coins are highly volatile, strict risk control needed )

- Execution strategy: After reaching Target 1, reduce position by 50% to lock in profits, and move the remaining stop loss to entry price (break-even). If the price strongly breaks above 0.0878 and stabilizes, target the remaining position towards 0.0910.

Deep logic: Market depth shows buy orders (Bid) far thicker than sell orders (Ask), with a depth imbalance of 17.42%, indicating strong support below. The 1H RSI is at 65.78, in a strong zone but not overbought, leaving room for further upside. Over the 4-hour cycle, open interest (OI) remains stable while the price surges, indicating healthy price-volume growth rather than purely short covering. Combined with the negative funding rate, it’s clear that major players are defending the price or orchestrating a short squeeze. The current pullback after a breakout is the best risk-reward entry point.

View real-time market 👇 $ESP

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