Cryptocurrency

Bitcoin

Chainlink

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 <p class="paragraph">Euphory and greed are dominating sentiments in the cryptocurrency market at this point. Most traders and investors expect further growth and call for a bull market for Bitcoin (BTC) and altcoins in the coming days.</p> 
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 <p class="paragraph">Nevertheless, bearish sentiment is rising for two <a rel="dofollow" title="cryptocurrencies" href="https://thebittimes.com/tag/cryptocurrencies.html">cryptocurrencies</a>, with an increased number of short positions recently opened. If the overall positive sentiment turns to them, these two digital assets could face a short <a rel="dofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> at any moment.</p> 
 <p class="paragraph">In order to evaluate the short <a rel="dofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> risk and opportunity, Finbold gathered derivative market data from <em>CoinGlass</em> on December 6. Notably, their volume is heavily weighted toward shorts over long positions in both the 12 and 24-hour time frames.</p> 
 <p class="paragraph">The aforementioned cryptocurrencies are dYdX (DYDX) and Chainlink (LINK).</p> 
 <h2 class="wp-block-heading" id="h-dydx-dydx-massive-short-squeeze-alert">dYdX (DYDX) massive short squeeze alert</h2> 
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       <h3 class="font-bold leading-6 " id="short-squeeze-alert-for-december-1-two-cryptocurrencies-with-potential-to-skyrocket"> Short squeeze alert for December 1: Two cryptocurrencies with potential to skyrocket </h3> 
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       <h3 class="font-bold leading-6 " id="chainlink-price-prediction-as-link-sees-largest-whale-activity-in-2023"> Chainlink price prediction as LINK sees largest whale activity in 2023 </h3> 
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 <p class="paragraph">Interestingly, dYdX is now ethDYDX with a recent token migration to its own chain, while the most liquid asset is still the ERC-20 one, running on Ethereum. The unlock of a massive amount of tokens contributes to the surge of short positions.</p> 
 <p class="paragraph">DYDX short-sellers opened $173.84 million (54.46%) bearish positions in the last 12 hours and $301.98 million (53.73%) in a day. Meanwhile, the token is trading at $2.95 with 4.41% losses at the time of publication.</p> 
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  <img decoding="async" loading="lazy" width="1024" height="70" src="https://cdn.thebittimes.com/images/2023/12/07/34b43ef35e07b11391eed775d339695f.webp" alt="DYDX Long/Short ratio on 12 and 24 hours" class="wp-image-141750" srcset="https://cdn.thebittimes.com/images/2023/12/07/34b43ef35e07b11391eed775d339695f.webp 1024w, https://cdn.thebittimes.com/images/2023/12/07/34b43ef35e07b11391eed775d339695f.webp 300w, https://cdn.thebittimes.com/images/2023/12/07/34b43ef35e07b11391eed775d339695f.webp 768w, https://cdn.thebittimes.com/images/2023/12/07/34b43ef35e07b11391eed775d339695f.webp 1536w, https://cdn.thebittimes.com/images/2023/12/07/34b43ef35e07b11391eed775d339695f.webp 1940w" sizes="(max-width: 1024px) 100vw, 1024px">
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   DYDX Long/Short ratio on 12 and 24 hours. Source: <em>CoinGlass</em>
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 <p class="paragraph">The total open interest in short positions is 1.37 times higher than its 24-hour volume of $220.29, which is already 34.27% of DYDX’s market cap — representing a huge weight of value.</p> 
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  <img decoding="async" loading="lazy" width="576" height="260" src="https://cdn.thebittimes.com/images/2023/12/07/cbed38874b2fc4371260a56c2f07c034.webp" alt="dYdX market cap and volume (24h)." class="wp-image-141751" srcset="https://cdn.thebittimes.com/images/2023/12/07/cbed38874b2fc4371260a56c2f07c034.webp 576w, https://cdn.thebittimes.com/images/2023/12/07/cbed38874b2fc4371260a56c2f07c034.webp 300w" sizes="(max-width: 576px) 100vw, 576px">
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   dYdX market cap and volume (24h). Source: <em>CoinMarketCap</em>
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 <p class="paragraph">With one of the market’s highest long/short ratios, DYDX is an appealing candidate for a short squeeze.</p> 
 <h2 class="wp-block-heading" id="chainlink-link-to-face-a-short-squeeze">Chainlink (LINK) to face a short squeeze</h2> 
 <p class="paragraph">Chainlink is another appealing candidate, considering its framework is used by many protocols in decentralized finance (DeFi). Essentially, a global bull market could increase the demand for its solution, pivoting from the current bearish dominance.</p> 
 <p class="paragraph">The $675.07 million 24-hour opened short positions (52%) is notable. Of which $331.54 million were opened in the last 12 hours, while LINK is trading at $15.62 by press time.</p> 
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  <img decoding="async" loading="lazy" width="1024" height="64" src="https://cdn.thebittimes.com/images/2023/12/07/1f13152b7cd64802f1bcc7e1a64fb6a5.webp" alt="LINK Long/Short ratio on 12 and 24 hours. " class="wp-image-141752" srcset="https://cdn.thebittimes.com/images/2023/12/07/1f13152b7cd64802f1bcc7e1a64fb6a5.webp 1024w, https://cdn.thebittimes.com/images/2023/12/07/1f13152b7cd64802f1bcc7e1a64fb6a5.webp 300w, https://cdn.thebittimes.com/images/2023/12/07/1f13152b7cd64802f1bcc7e1a64fb6a5.webp 768w, https://cdn.thebittimes.com/images/2023/12/07/1f13152b7cd64802f1bcc7e1a64fb6a5.webp 1536w, https://cdn.thebittimes.com/images/2023/12/07/1f13152b7cd64802f1bcc7e1a64fb6a5.webp 1998w" sizes="(max-width: 1024px) 100vw, 1024px">
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   LINK Long/Short ratio on 12 and 24 hours. Source: <em>CoinGlass</em>
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 <p class="paragraph">These are also a relevant weight in comparison to the $802 million volume surging by 51% in the day. LINK currently has a $8.7 billion market cap, and an increased demand could trigger the awaited short squeeze.</p> 
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  <img decoding="async" loading="lazy" width="570" height="264" src="https://cdn.thebittimes.com/images/2023/12/07/4c715b2d4712c8763718f969874e59f8.webp" alt="Chainlink market cap and volume (24h)" class="wp-image-141753" srcset="https://cdn.thebittimes.com/images/2023/12/07/4c715b2d4712c8763718f969874e59f8.webp 570w, https://cdn.thebittimes.com/images/2023/12/07/4c715b2d4712c8763718f969874e59f8.webp 300w" sizes="(max-width: 570px) 100vw, 570px">
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   Chainlink market cap and volume (24h). Source: <em>CoinMarketCap</em>
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 <p class="paragraph">All things considered, there are no guarantees that a short <a rel="dofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> will happen with these <a rel="dofollow" title="cryptocurrencies" href="https://thebittimes.com/tag/cryptocurrencies.html">cryptocurrencies</a>. Crypto investors must do their own research and consider other data to make profitable financial decisions.</p> 
 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p> 
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<p>Source: <a rel="dofollow" target="_blank" href="https://thebittimes.com/short-squeeze-alert-for-december-7-two-cryptocurrencies-with-potential-to-skyrocket-tbt72843.html">https://thebittimes.com/short-squeeze-alert-for-december-7-two-cryptocurrencies-with-potential-to-skyrocket-tbt72843.html</a></p>

Short squeeze alert for December 7: Two cryptocurrencies with potential to skyrocket

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