【$SONIC Signal】Long | Short Squeeze Initiated, Deep Imbalance Support

$SONIC After breaking above the EMA20 on the 4H timeframe with increased volume, it is currently experiencing a healthy pullback. Price action indicates that buying pressure is continuously absorbing selling pressure at key support levels, forming a bullish continuation pattern.

🎯Direction: Long

🎯Entry: 0.0565 - 0.0570

🛑Stop Loss: 0.0532 (Break below previous low / invalidation point)

🚀Target 1: 0.0620

🚀Target 2: 0.0680

Market Analysis: Three consecutive volume-driven bullish candles on the 4H chart confirm a trend reversal. Although the latest candle closed with an upper shadow, depth data shows that buy orders significantly outweigh sell orders (Depth Imbalance -9.36%), indicating institutional support below.

Core Logic: The primary strategy is a short squeeze rather than simply chasing the rally. The funding rate is at -0.8643%, an extremely negative value, and open interest (OI) remains high at 58.85 million, which is a typical sign of a short squeeze. Although RSI has reached 76.45, it becomes invalid in a short squeeze scenario.

Technical Resonance: Price has stabilized above EMA20 (0.0464) and EMA50 (0.0460), forming a bullish alignment. ATR is 0.0040; stop loss is set below the previous low at 0.5 ATR to avoid whipsaws. Entry is at the Fibonacci 0.382 retracement level coinciding with previous order block, with a risk-reward ratio >2.5.

Trade here 👇 $SONIC

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