【$SONIC Signal】Long | Healthy Pullback After Short Squeeze Initiation

$SONIC After a violent 24% surge, the price is undergoing a healthy cooldown below the key resistance zone. The 4H chart shows a pullback after breaking above the previous high of 0.06163, which is a typical confirmation of a breakout structure.

🎯 Direction: Long

🎯 Entry: 0.0610 - 0.0620

🛑 Stop Loss: 0.0550 ( Breaks below previous low and EMA20 support, rigid stop loss )

🚀 Target 1: 0.0695 ( Previous high and Fibonacci 1.618 extension level )

🚀 Target 2: 0.0760 ( Daily resistance at previous high )

Hardcore Logic: The current market is a typical short squeeze scenario. The funding rate is -0.29%, indicating a deep negative value, but open interest (OI) remains stable, showing that short positions are being continuously squeezed rather than main players offloading. The 4H RSI has fallen from the overbought zone at 73.76, indicating a healthy momentum reset.

Depth Imbalance data shows buy orders are 14.24% thicker than sell orders, with a buy/sell ratio of 1.33, indicating strong institutional buy support below. The price remains firmly above EMA20 (0.0508), and the trend structure is intact. The last 4H candle closed above the previous high, confirming an effective breakout.

Overall, this is a trend-following move after a short squeeze. A pullback near the breakout level presents a low-risk long opportunity with a risk/reward ratio >2.5.

Trade here 👇 $SONIC

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