Two cryptocurrencies with potential to skyrocket

After a few days of high volatility, the cryptocurrency market showed low volatility on November 23. As it happens, trading volume plummets, reflecting a momentary lack of speculative open interest in long and short positions.

Nevertheless, it is still possible to find short squeeze potential even amid a reduced open interest volume. In particular, by looking into the correlation between opened short positions and the traded volume in a given time frame.

Notably, four projects have a growing potential for a short squeeze if sentiment shifts from bearish to bullish until the weekend ends.

Bitcoin Cash (BCH) has $52.61 million of opened short positions in the last 12 hours, accruing for 52.62% of its 12-hour open interest.

Moreover, Avalanche (AVAX) has $216.49 million (51.83%), Polkadot (DOT) has $44.55 million (52.51%), and the Tellor Network token Tributes (TRB) has $120.21 million (52.25%).

Long/Short ratio on derivatives. Source: CoinGlass

In this context, Finbold looked into these cryptocurrencies‘ market capitalization and exchange volume to filter two out of the four that are more likely to see a short squeeze.

Tellor (TRB)

Particularly, TRB has the highest weight in its opened short positions. The $120.21 million shorts opened in the last 12 hours are 2.4 times higher than Tellor’s 24-hour exchange volume of $49.48 million.

Additionally, the short positions open interest capitalization is a little less than half of its total market cap of $222.51 million. Raising relevant alarms for the token’s future.

TRB market data. Source: CoinMarketCap

Investors and traders must be cautious while seeking a short squeeze attempt, considering the token rose 700% in one year. It is important to understand that the increased short positions could be a response to this 12-month run, and TRB could be overbought at this point.

Nevertheless, any meaningful increased demand could be enough to liquidate short-sellers in a low time frame. TRB is trading at $89.43 by press time.

Avalanche (AVAX)

Meanwhile, AVAX is trading at $20.72 with a capitalization of $7.37 billion and a 24-hour volume that is 7.5% of its market cap.

Avalanche has the most relevant weight of short positions related to these metrics, with 41% of the mentioned exchange volume and 2.93% of the total market value.

AVAX market data. Source: CoinMarketCap

It is also notable how JPMorgan has chosen Avalanche for its blockchain endeavor, which can bring fresh demand for its native token. Therefore, AVAX could face a potential short squeeze in the coming days.

Interestingly, both Trellor and Avalanche have seen high liquidation events in the past against short-sellers. The bearish dominance could trigger short squeezes for both cryptocurrencies or feed a pivotal downtrend for the rest of the week.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Comments

No comments to show.
New Bookmakers
Playfina.com

The newest member of DAMA N.V. family offers more than 6000 games and accepts a wide range of cryptocurrencies, which are arguably the most widely used form of payment for gamblers right now.

Cryptoplay.io

In the year 2021, Cryptoplay Casino went live for the first time. To bitcoin enthusiasts, the online gaming site offers an amazing game library, exclusive bonuses, and promotions.

CryptoGames

Since its inception in 2014, this crypto casino has amassed a sizable following and an even stronger reputation. This all-crypto casino has 8 Provably Fair games, a faucet, and the ability to utilize one of ten cryptocurrencies.

PlayAmo

In general, if you're looking for information on the PlayAmo casino's features and idiosyncrasies, you'll find it here.

Oshi

Oshi Casino is a bitcoin casino with a simple instant-play interface that accepts euro deposits as well as other cryptocurrencies like Ethereum.