【$COS Signal】Short Squeeze Rally Continues, 1H Level Strong Pullback Is An Opportunity

$COS 1H level is currently in a strong consolidation at high levels after experiencing an epic surge. A massive bullish candle on the 4H level has established a bullish pattern. Although RSI has entered an extremely overbought zone, open interest remains stable and the funding rate is deeply negative, suggesting that short positions are still stubbornly resisting and the Short Squeeze momentum has not been fully released yet. Current price is far from the 1H level moving averages, making chasing highs extremely risky, but the buying depth below is unusually thick, providing strong support for pullbacks.

🎯Direction: Long (Buy On Pullback)

⚡Entry/Orders: 0.00145 - 0.00149

🛑Stop Loss: 0.00130

🚀Target 1: 0.00226

🚀Target 2: 0.00265

🛡️Trade Management:
- Execution Strategy: Use batch take-profit strategy. When price touches the first target of 0.00226, reduce position by 50% and lock in partial profits, while move the stop loss of remaining positions to around entry price of 0.00149. If price continues to push toward the second target, exit completely around 0.00265. If price fails to pullback as expected and directly breaks below the stop loss, exit decisively and wait for the next opportunity.

Deep Logic: This is a typical short squeeze scenario. Price surges over 130% within 4 hours, but open interest has not decreased, indicating this is not simply a pump and dump, but rather short positions being trapped and forced to cover. The deeply negative funding rate (-2.0%) further exacerbates the holding costs for shorts. The 1-hour chart shows buy orders far exceed sell orders, with extremely strong support below the market. Although RSI shows overbought conditions, such extreme momentum situations may sustain overbought states. The core strategy is to wait for price to make a healthy pullback to the 1-hour moving average system (around 0.0015), and once supported, it provides a low-risk high-probability second entry opportunity.

View Live Chart 👇 $COS
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