【$ME Signal】Hold cash and wait — after short squeeze, cooling off at high levels, waiting for healthy pullback

$ME After a single-day surge of 44%, it consolidates at a high around 0.19. This is a typical cooling-off phase after a short squeeze; chasing the high carries great risk.

🎯 Direction: Hold cash

Market analysis: The 4-hour RSI reaches as high as 78.42, entering overbought territory. Key data reveals the essence of the short squeeze: the funding rate of -0.7590% is extremely negative, but open interest (OI) remains stable, indicating shorts are still holding positions and longs have not taken large profits. Deep imbalance of -20.63% and a buy/sell order ratio of 0.66 suggest selling pressure is significantly greater than buying pressure, with heavy overhead selling.

Logical core: The current price is far from the EMA20 (0.1514) and EMA50 (0.1500), with excessive divergence. The last 4-hour candlestick closed downward, and the buy/sell ratio is 0.47, showing buying momentum is weakening. ATR is 0.0097, indicating high volatility and a high risk of disorderly price spikes.

Strategy: This is not the time for trend-following or buying on a pullback. The price needs a healthy correction to test key supports (such as the previous high of 0.1735 or EMA20) and wait for RSI to cool down near 50. Until deep imbalance and continuous buy absorption evidence appear, refrain from going long. Also, with negative funding rates and stable OI, short positions are prone to secondary short squeezes, so avoid shorting as well.

Trade 👇 $ME

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