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| Source: Coinmagazine |
A recent shift in sentiment has triggered short squeezes across various cryptocurrencies, and this week, our attention turns to two digital assets showing potential for significant upward movement. Coinmagzine with accurate predictions on projects like Bitcoin (BTC) and Ethereum (ETH), Solana (SOL) short squeezes occur when bearish traders dominate, leading to a cascade of liquidations and a surge in prices.
Filecoin (FIL)
Short Squeeze Alert: Filecoin emerges as the standout opportunity, being the only cryptocurrency left with substantial short positions according to CoinGlass’ 3-day and weekly heatmaps. Potential liquidations could drive FIL to around $5.5 this week, marking a nearly 4% gain from its current price of $5.29.
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| Source: Coinglass |
Dogecoin (DOGE)
Short Squeeze Alert in Higher Time Frames: Dogecoin presents another potential short-squeezable cryptocurrency, particularly in the higher time frames. Accumulated open interest in short positions sets the stage for a short squeeze in February, targeting $0.0948 per coin in the monthly time frame. This could lead to a remarkable 17% surge for the leading meme coin, punishing DOGE’s short sellers. However, caution is advised as lower time frames indicate fresh liquidity to the downside from long-position traders, which might face liquidation before a pump.
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| Source:Coinglass |
Related news: Dogecoin's Meteoric Rise: Targets $0.1 Amidst Unprecedented 1,100% Surge in New Addresses
Conclusion
While short-squeeze indicators provide insights, it's crucial to recognize that the cryptocurrency market is dynamic and unpredictable. Short positions may increase due to various factors, including poor fundamentals or bearish news. Investors should exercise caution, considering the broader context around each cryptocurrency's potential and being aware of the speculative nature of investing.
Disclaimer: This information does not constitute investment advice. Investing involves risks, and individuals should conduct thorough research and exercise caution when making financial decisions.
