【$NEWT Signal】Short Covering Rebound + 1H Momentum Repair

$NEWT The 1H timeframe has experienced a massive rally and is now undergoing a healthy correction, with current prices finding initial support around 0.0785. The 4H timeframe has broken through the previous consolidation zone, and the trend has shifted upward. Key points: after the large rally, open interest remains stable, and the funding rate is as high as -1.55%, indicating strong short covering expectations. The 1H RSI has fallen from overbought levels to 64, gathering strength for another upward move.

🎯Direction: Long (Long)

🎯Entry/Order: Enter in batches within the current price range of 0.0785 - 0.0780

🛑Stop Loss: 0.0747 (Break below the previous 4H candle low)

🚀Target 1: 0.0840 (Near previous high resistance)

🚀Target 2: 0.0888 (Historical high)

🛡️Trade Management:

- Position size suggestion: Light position (Reason: Intraday volatility has increased to 16%, higher risk)

- Execution strategy: Use staggered entries, half at 0.0785, add on dips to 0.0780. After reaching Target 1, reduce position by 50% and move stop loss to entry price. Hold remaining position for Target 2. If a stagnation candle (long upper shadow) appears on the 1H chart, exit all positions.

Deep logic: Market signals indicate a price increase, combined with stable open interest rather than decline, ruling out pure short squeeze. It appears more like main force supporting the price or new funds entering. The deep imbalance of -23.35% shows slight selling pressure, but massive buy orders are stacked below 0.0784 (observe order_book bids), providing strong micro support. Negative funding rate is the core driver; short positions have extremely high costs, and any stabilization could trigger a short squeeze. The 1H EMA20 (0.0739) has become a dynamic support; a correction above this level indicates strength.

View real-time market 👇 $NEWT

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