Short Squeeze Alert for Filecoin (FIL)
A bearish sentiment is currently prevailing in the cryptocurrency market, particularly for Filecoin (FIL) and Uniswap (UNI). Short positions have seen an increase, indicating the possibility of short squeezes if the sentiment changes.
Finbold has collected derivative market data from CoinGlass, which reveals a significant imbalance between shorts and longs in both the 12 and 24-hour time frames.
Within the last 12 hours, Filecoin has witnessed $53.44 million in long positions and $61.49 million in short positions (53.5%). The 24-hour timeframe shows a similar trend, with $102.32 million in shorts (53.52%) compared to $88.87 million in longs.
Despite experiencing a slight bearish sentiment with a 1% loss in the day, Filecoin is currently trading at $4.38 per token. This creates an opportunity for short-sellers to profit and potentially trigger a short squeeze due to increased liquidity.
It’s worth noting that the capitalization of 24-hour short positions exceeds the daily exchanged volume for Filecoin.
Uniswap (UNI) Could Skyrocket with Upwards Liquidity
In the last 24 hours, Uniswap has seen $102.39 million worth of short positions opened (52.42%) compared to $92.93 million in longs. The ratio of longs to shorts within the past 12 hours indicates that 54% of current open interest predicts a bearish outcome.
Similarly to Filecoin, UNI is currently experiencing a daily loss of 1.27%, trading at $5.93 per token. However, its 24-hour volume is twice the size of its opened short positions within the same timeframe.
Although the available liquidity may not be sufficient to trigger a short squeeze for Uniswap, the significant weight against longs could motivate market makers to target shorts, despite the relatively low volume.
It’s important to note that there are no guarantees of a short squeeze occurring for these cryptocurrencies. It is crucial for crypto investors to conduct their own research and consider additional data to make informed financial decisions.
Hot Take: Potential Short Squeezes on the Horizon for FIL and UNI
A bearish sentiment currently looms over Filecoin (FIL) and Uniswap (UNI), as evidenced by the increasing number of short positions. Should this sentiment shift, there is a possibility of short squeezes occurring in the near future. Filecoin’s imbalance between shorts and longs, combined with its slightly bearish sentiment, presents an opportunity for short-sellers to profit through a potential short squeeze. On the other hand, Uniswap’s high weight against longs may incentivize market makers to target shorts, although the available liquidity may not be enough to trigger a short squeeze. It is important for crypto investors to conduct thorough research and consider multiple factors before making any financial decisions.
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