【$AKE Signal】Short position + Extreme overbought after short squeeze

$AKE completed a violent surge on the 4-hour chart, with a single candle increase of over 20%, RSI reaching as high as 87.2, entering the extreme overbought zone. Funding rate is as high as 0.1254%, but open interest remains stable, with buy order depth imbalanced (47.66%), indicating that the current momentum is a continuation of the inertia after a short squeeze rather than a healthy trend.

🎯 Direction: Short

Market analysis: Price has moved far away from the EMA20 (0.0002), with a large divergence. Although the last 4-hour candle was volume-heavy, the buy/sell ratio is only 0.5, showing that the momentum to chase higher is already divided. The order book shows a significant increase in ask wall orders above 0.000307, forming a short-term strong resistance.

Logical core: According to the short squeeze warning principle, with a positive funding rate and stable open interest, it is strictly forbidden to go against the trend and attempt to top out and short. However, based on long-entry conditions, the current price is far from key support levels, and RSI is severely overbought, which is a reckless chasing zone and does not meet any high-probability entry logic.

Risk control core: Entering at this point, regardless of long or short, stop-losses are difficult to set. Long stop-losses are too far away, resulting in poor risk-reward ratio; shorting violates the iron law of the short squeeze market. The best strategy is to wait for the price to cool down, retest key supports (such as the 0.000285-0.000292 range), and observe volume and price action before making a decision.

Trade 👇 $AKE

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