【$DOT Signal】Bull-Bear Battle, 1H Breakout Imminent, Short Squeeze Setup for Rebound

$DOT The 1H timeframe is currently oscillating narrowly below the key resistance level of 1.612, while the 4H timeframe is in a stabilization phase after a decline. The current order book depth shows buy orders (1.60-1.595) significantly thicker than sell orders (1.611-1.616), with an imbalance of 14.39%, indicating a clear intention by the main force to defend the price. Combined with negative funding rates and stable open interest (OI), this is a typical precursor to a short squeeze, with the price holding firm. Once broken, it will trigger short covering.

🎯Direction: Long (Long)

⚡Entry/Order: Buy stop after breaking 1.612 (Buy Stop)

🛑Stop Loss: 1.585

🚀Target 1: 1.645

🚀Target 2: 1.675

🛡️Trade Management:
- Position Size Recommendation: Light
- Execution Strategy: After breakout entry, if the price quickly rises, reduce 50% of the position near Target 1, and move the stop loss up to the entry price of 1.612. For the remaining position, aim for Target 2. If the 1H close drops below the moving stop, exit all positions.

Depth Logic: Although the price has pulled back from the high, the 4H candlestick forms a double bottom at 1.564, with the structure intact. The 1H RSI(54.24) is in a healthy zone, and EMA20(1.5965) provides dynamic support. Most importantly, market logic indicates “price falling but OI stable,” which is not main force distribution but rather long liquidation or shakeout. In a negative funding rate environment, short positions have high costs, and buy orders accumulate on the order book, fueling an upward breakout.

Check real-time market 👇 $DOT

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