【$CLO Signal】Long | Healthy Consolidation After Short Squeeze Initiation

$CLO After a single-day surge of 28%, it is consolidating within a narrow range below the previous high resistance zone. This is a typical healthy reset after a short squeeze, not a top.

🎯Direction: Long

🎯Entry: 0.0870 - 0.0880

🛑Stop Loss: 0.0814 (Breaks below the 4H previous low, rigid stop loss)

🚀Target 1: 0.0975 (Previous high resistance)

🚀Target 2: 0.1050 (Fibonacci 1.618 extension level)

Market Analysis: After a volume breakout on the 4H timeframe, the price consolidates with decreasing volume around 0.088. The buy/sell transaction ratio remains stable at 0.48-0.5, indicating limited selling pressure. Open interest remained stable during the surge, and the funding rate is only 0.075%, far from dangerous levels, ruling out the possibility of major players pushing the price up to dump.

Core Logic: Deep imbalance at -12.02%, with ask orders significantly thicker than bid orders. This is a typical “liquidity wall,” indicating that major players are intentionally suppressing the price at low levels to absorb chips. The price remains above the EMA20 (0.0715), and the trend structure is intact. RSI (73.98) is high but can sustain overbought conditions during a short squeeze. Combining the market signals of “rising price + stable open interest,” this aligns with the early stage of a short squeeze driven by major players, not retail FOMO exhaustion.

Key Levels: The previous breakout high of 0.0815 has become a strong support, with stop loss set below it. The upper targets are the previous high of 0.0973 and the Fibonacci extension level. Risk-reward ratio > 2.5, meeting mathematical advantage.

Trade here 👇 $CLO

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