$SQD Direction: Long Confidence: High
Core Logic: Under extreme negative funding rate (-1.05%), the price has risen sharply from a low of 0.057 to 0.068 and continues to resist declines, while the scale of short liquidations far exceeds that of longs (24h short liquidation 925,700 vs long liquidation 284,300), indicating that shorts are being massively cleaned out, with strong spot buying supporting the short squeeze process.
1. Data Dashboard
- Funding Rate Interpretation: The current extreme negative funding rate of -1.05% means that shorts continue to pay high fees to longs, creating immense psychological pressure on shorts, especially when the price rises, which can accelerate short liquidations or liquidations, creating a vicious cycle.
- OI Interpretation: Perpetual open interest of $22.46 million accompanied by rising prices indicates that capital is increasing long positions, intending to promote a reversal rather than a trend-following sell-off.
- Liquidation Interpretation: Recently, short liquidations have dominated (the latter part of the short liquidations is in the million range vs long liquidations in the ten thousand range), shorts are in pain (huge losses), while longs/spot buyers are profiting and cleaning out leveraged shorts.
2. Risk Assessment
- Main Risks: Although spot trading volume has increased, it still belongs to the small to medium-cap level; if the overall market (BTC currently weak at around 87k with a slight decline) further drags down, a short-term pullback may occur; coins with high control are easily affected by a single large holder.
- Black Swan Check: No signs of projects running away, being hacked, or negative news; the market is normally pumping.
3. Operation Suggestions
- Suggested Entry Area: Around the current price (0.068) or a pullback to 0.065
- First Take Profit Level: 0.075-0.08 (based on recent volatility of ~10-15% daily range)
- Stop Loss Level: 0.064 (not exceeding entry price -6%, or recent low support
