【$MINA Signal】Oversold Rebound Play: 1H RSI Bottom Divergence, Short Squeeze Opportunity Under Negative Funding Rates

$MINA The 1H timeframe just experienced a waterfall decline, with RSI dropping to 23 indicating severe oversold conditions. The 4H timeframe has broken all moving averages and is in a bearish alignment. However, the key point is: the 1H RSI shows a clear bottom divergence with the price, and the funding rate is at -0.05%, indicating negative funding. Open interest (OI) remains stable rather than decreasing, suggesting the decline may be driven by passive long liquidations rather than active selling by major players. Currently, the price is temporarily stabilizing around 0.0575, with buy-side order book depth (1.27) significantly better than the sell side, indicating a technical rebound demand.

🎯Direction: Long (Long) - Betting on a Oversold Rebound

🎯Entry/Order: 0.0573 - 0.0575 (Reason: Current price area, initial support level on the 1H chart )

🛑Stop Loss: 0.0567 (Reason: Break below previous low 0.05689 and ATR lower band )

🚀Target 1: 0.0592 (Reason: 1H EMA20 and previous small platform resistance )

🚀Target 2: 0.0605 (Reason: Starting point of the 4H downtrend and strong resistance near EMA50 )

🛡️Trade Management:

- Position Size: Light (Reason: Overall trend remains bearish; this is a contrarian rebound play with higher risk )

- Execution Strategy: When the price rebounds near Target 1, if a stagnation candle appears (such as a long upper shadow), consider closing 50% to lock in profits. Move the stop loss on the remaining position to the entry price. If the price cannot effectively break above 0.0585 (the 1H opening price resistance), consider exiting all positions.

Depth Logic: Market logic suggests ‘price decline combined with open interest analysis’. Data shows that during sharp drops, OI remains stable and negative funding persists, forming the classic conditions for a ‘short squeeze’ or a rebound after forcing longs to cover. The bottom divergence on the 1H RSI is a technical early warning signal. The order book imbalance (11.77%) indicates selling pressure is accumulating above, but there is substantial buy-side order volume below, showing funds are absorbing at current levels. This is a high-risk, high-reward short-term sniper opportunity, centered on the interplay between short covering and bullish rebound.

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