Bitcoin Price Retracement Triggers Short Squeeze Alert for Cardano (ADA) and Radix (XRD)
Bitcoin (BTC) recently experienced a price retracement, dropping to as low as $42,100. This downturn had an impact on the entire cryptocurrency market. Despite the bearish sentiment, some cryptocurrencies have been heavily shorted, which could lead to potential short-squeeze events on December 29.
Altcoins, in particular, have been able to minimize losses compared to Bitcoin. This has sparked signs of an altseason, where alternative cryptocurrencies gain momentum. The increased volume of short positions in certain cryptocurrencies could potentially trigger massive liquidations and drive prices upwards.
Short Squeeze Alert for Cardano (ADA) on December 29
One of the cryptocurrencies that has triggered a short squeeze alert is Cardano (ADA). As one of the oldest and most solid competitors to Ethereum (ETH), Cardano has a market capitalization of $22.07 billion. Its native token is currently trading at $0.623, down 3.65% in the past 24 hours.
The derivative volume for ADA stands at $1.22 billion daily, with a significant portion (53.27%) consisting of opened short positions amounting to $697.96 million. Interestingly, Cardano is still poised for a breakout from a symmetrical triangle pattern, as reported by Finbold on December 27. If ADA can hold above this technical pattern, it could potentially trigger the expected short squeeze towards $0.78 per token.
Radix (XRD) Could Experience a Significant Surge on December 29
Another cryptocurrency that has attracted a high number of short positions is Radix (XRD), an innovative Ethereum competitor focused on decentralized finance (DeFi).
The short positions for XRD account for 77.60% of its $4.88 million 24-hour volume. If a bullish sentiment emerges, it could lead to the liquidation of over $3.79 million from short-sellers, resulting in a massive short squeeze.
Radix’s native token is currently trading at $0.0451, down 4.19% on the day. However, investors should exercise caution due to XRD’s high volatility and low market capitalization.
Conduct Your Own Research
It’s important to note that there are no guarantees that these cryptocurrencies will experience a short-squeeze liquidation event. As a cryptocurrency trader, it is crucial to conduct your own research and consider the fundamental aspects of each project before making any financial decisions.
Hot Take: Potential Short Squeezes Could Drive Prices Higher
The recent price retracement in Bitcoin has caused significant movements in the cryptocurrency market. As altcoins show signs of an altseason and increased volume of short positions, there is a possibility of short squeezes occurring on December 29.
Cardano (ADA) and Radix (XRD) have attracted attention as potential candidates for short squeezes. Cardano’s technical breakout from a symmetrical triangle pattern could trigger the expected short squeeze, while Radix’s high percentage of short positions leaves room for a significant surge if bullish sentiment prevails.
However, it’s important to approach these potential opportunities with caution and conduct thorough research before making any investment decisions.
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