cryptocurrency At a time when the market is relatively consolidated, it continues to look for room for movement. This process caused some altcoins to experience a short squeeze. While two important altcoins such as Filecoin and Dogecoin appear to be in a short squeeze phase, DOGE is also showing a squeeze on a higher time frame. For this reason, the possibility of a short position squeeze on the DOGE front may change at any time.
Short position squeeze, also referred to as “short squeeze”, refers to the pressure that investors who open “short positions” regarding the decrease in the price of the asset face to close their positions after the increase in price. As this happens, positions are liquidated and the price increases, and as the price increases, other remaining positions continue to be liquidated.
As reported by Koinfinans.com, according to CoinGlass’s 3-day and weekly heat maps, filecoin The only crypto asset with significant short interest. Reaching these liquidations could push FIL as high as $5.5 this week. This represents a gain of approximately 4% from the current price of $5.29.
dogecoin It accumulated enough open interest in short positions to experience a short squeeze in February. Specifically, this concentrated liquidity pool targets $0.0948 per coin in the monthly time frame.
This could mean a 17% increase for the meme coin and would penalize DOGE short sellers. However, Dogecoin’s lower time frames are recording some fresh liquidity on the downside from long position traders, which could face liquidation ahead of a pump.
