These 2 Altcoins Are in a Good Position to Skyrocket!

Cryptocurrency investors generally follow price trends, entering short positions during bearish phases and long positions during bull rallies. This behavior paves the way for profitable long or short squeezes by whales and market makers. Crypto analyst Vinicius Barbosa is currently looking at 2 altcoin projects with high short squeeze potential.

‘Short squeeze’ move in the altcoin market

When initiating short positions, traders essentially bet that the cryptocurrency will decline in value through a margin investment and a liquidation price above the current exchange rate. However, if the price of the asset rises and reaches this liquidation point, it is possible for traders to forcibly close their positions. This event, which we know as ‘short squeeze’, increases the price. It also involves a series of shutdowns that clear liquidity pools.

‘Short squeeze’ warning for Solana (SOL)

In particular, Solana (SOL) has seen an increase in short positions over the last 24 hours. Thus, it created upstream liquidity pools. Derivatives data from CoinGlass on February 20 shows this. 52.92% of the 24-hour volume of $6.13 billion was realized by short sellers worth $3.21 billion.

SOL derivative market data. Source: CoinGlass

Currently, the most likely target for the altcoin is $119.47. More than $820,000 was liquidated at this price. Solana is trading at $106.37, down 6.78% on the day following the overall decline in the crypto market.

LEFT 1-week liquidation heat map. Source: CoinGlass

Sui Network (SUI) can be pumped with a ‘short squeeze’

SUI, whose short position volume is increasing, is another altcoin with ‘short squeeze’ potential. Specifically, $440 million of the $814.26 million 24-hour volume consists of short positions.

SUI derivative market data. Source: CoinGlass

SUI’s liquidation heat map shows even more short squeeze potential than Solana’s compared to historical liquidations on the weekly time frame. Accordingly, there are pools of liquidity near the current price of $1.66 for the altcoin. Moreover, reaching these pools could trigger a pump, seeking further liquidation above the $1.95 zone.

SUI 1-week liquidation heat map. Source: CoinGlass

However, short sellers can avoid liquidation by adding more collateral to already open contracts or by closing their positions. Therefore, liquidity pools are likely to change rapidly over time as the market adapts to recent developments. As a result, it is possible that Solana and Sui Network will experience a ‘short squeeze’ this week due to increased short positions and upward liquidations. But cryptocurrencies are volatile and unpredictable. Prices and trends change every minute. Investors need to be cautious when speculating in this market and manage risk appropriately.

The opinions and predictions in the article belong to the analyst and are definitely not investment advice. We strongly recommend that you do your own research before investing.

To be informed about the latest developments, follow us twitterin, Facebookin and InstagramFollow on and Telegram And YouTube Join our channel!

source site-1