The cryptocurrency market is having a hard time deciding which direction to follow. That’s why it continues to remain in a consolidation range. In this context, some cryptocurrencies are creating ‘short squeeze’ opportunities for February. Crypto analyst Vinicius Barbosa looks at 2 altcoin projects with high potential to skyrocket.
‘S2 altcoins with high potential for ‘hort squeeze’: ARB and CRV
Short selling occurs when short sellers are liquidated when faced with a sudden price increase. These liquidations force traders to repurchase the cryptocurrency, pushing the price higher. This triggers further liquidation and potentially causes it to skyrocket.
CoinGlass’ liquidation heat map dated February 6 gives us some insights. In particular, the accumulated short liquidations on Arbitrum (ARB) and Curve (CRV) in the monthly period attract attention.
‘Short squeeze’ warning for Arbitrum (ARB)
First, Arbitrum has intense liquidity at the $2.4 price level. More specifically, there is a $33,150 short liquidation at $2,414. This makes it an attractive target for market makers.
Meanwhile, ARB was trading at $1,838 as of press time, up 4.75% in the last 24 hours. This bullish altcoin price action could catalyze a ‘short squeeze’, liquidating smaller targets up to $2.4. Interestingly, such a move would see Arbitrum gain over 30% in February.
Will Curve (CRV) skyrocket in February?
Another possible candidate for a ‘short squeeze’ is Curve DAO’s native token CRV. It currently has $68.64 million in open interest with an OI/Market Cap ratio of 0.1324 while trading at $0.471.
Coming to the liquidation heat map, CRV has liquidity for both sides. In this context, it is possible that the altcoin will see a brief move downward before it begins to rise rapidly. In addition, the most favorable liquidations are $0.573. However, a decline from here could increase short positions and change this scenario for even higher prices. This already has significant liquidity.
However, a shift in sentiment is still required for these ‘short squeezes’ to occur. Cryptocurrencies are highly volatile assets in a market that changes every day. Therefore, investors should trade carefully by following trends and adapting to each new development.
The opinions and predictions in the article belong to the analyst and are definitely not investment advice. cryptokoin.com We strongly recommend that you do your own research before investing.
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