【$COS Signal】Short Squeeze Trend Continues, 1H Level Strong Pullback is an Opportunity

$COS The 1H level is currently in strong consolidation at high levels after experiencing an epic rally. A massive bullish candle on the 4H level established a bullish structure. Although RSI has entered extreme overbought territory, positions remain stable and the funding rate is deeply negative, suggesting bears are still resisting stubbornly and the Short Squeeze momentum has not fully been released. Current price is far from the 1H level moving averages; chasing highs directly carries extreme risk. However, the buy side support below is unusually thick, providing strong support for pullbacks.

🎯Direction: Long (Buy on Dips)

⚡Entry/Pending Orders: 0.00145 - 0.00149

🛑Stop Loss: 0.00130

🚀Target 1: 0.00226

🚀Target 2: 0.00265

🛡️Trade Management:
- Execution Strategy: Use staged profit-taking. When price reaches the first target of 0.00226, reduce position by 50% and lock in partial profits, while move the stop loss for remaining position up to around entry price 0.00149. If price continues to attack the second target, close all positions near 0.00265. If price fails to pullback as expected and directly breaks below the stop loss, exit decisively and wait for the next opportunity.

Deep Logic: This is a typical short squeeze scenario. Price surged over 130% within 4 hours, but open interest did not decrease, indicating this is not a simple pump and dump, but rather short positions being forced to liquidate. The deeply negative funding rate (-2.0%) further increases the holding cost for bears. The 1-hour chart shows buy-side pending volume far exceeds sell-side, with extremely strong support underneath. Although RSI shows overbought, in such extreme momentum situations, overbought conditions may persist. The strategy core is to wait for price to undergo a healthy pullback toward the 1-hour moving average system (around 0.0015), and once it gains support, it becomes a low-risk high-probability second entry opportunity.

View Live Chart 👇 $COS
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