The cryptocurrency market followed a calmer trend last week compared to previous weeks. With open position levels of the market reaching attractive levels in this calm period following high-volume increases, the risk of short selling has increased in some cryptocurrencies.
Short Squeeze Probability
Short squeeze occurs when a significant number of investors are forced to exit short positions within a certain price range. The more market participants show interest, the higher the probability of a long or short squeeze for a cryptocurrency. According to CoinGlass data, particularly Ethereum and Chainlink need to be closely monitored as of March.
Ethereum Analysis
The increase in short positions in Ethereum (ETH) indicates the potential for price to rise. Weekly reviews suggest a liquidity range of $3,700 being targeted and the possibility of ETH price reaching $3,900 if this level is breached. Ethereum derivative markets are showing a robust outlook with over $13 billion in open interest. However, events related to the Ethereum Foundation and SEC actions related to ETH can affect these expectations.
Chainlink Status
Chainlink (LINK) is attracting attention with record volumes in the futures market. Potential fluctuations in LINK, which made its mark by the end of the year 2023, and margin liquidations observed by market followers, indicate the possibility of a short squeeze pushing LINK price above $20. This level is seen as the region where the largest liquidity pools for Chainlink are located.
When making these analyses and predictions, potential adverse price movements in Bitcoin and market news should also be taken into consideration. Such developments can have an effect on Ethereum and Chainlink, causing the anticipated scenarios not to materialize.
0 Comment