Cryptocurrency

Cardano

Bitcoin

Polygon

<div class="finbold">
 <p class="paragraph">The cryptocurrency market is retracing after a notable pump on January 2. This past surge caused short-squeeze events for the leading cryptocurrencies, liquidating thousands of crypto short-sellers.</p>
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 <p class="paragraph">Essentially, a short <a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> happens when short positions get liquidated on a majoritarian bearish market. These liquidations force purchases of the given <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currency, driving the price higher, bringing new liquidations, even higher prices, and a spiral event.</p>
 <p class="paragraph">In this context, Finbold looked into derivatives and liquidation data from <em>CoinGlass</em> to spot probable short-<a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> candidates.</p>
 <h2 class="wp-block-heading" id="h-short-squeeze-alert-for-polygon-matic">Short squeeze alert for Polygon (MATIC)</h2>
 <p class="paragraph">In particular, Polygon (MATIC) showed a 52.92% weight of $741.80 million in open short positions by press time. Moreover, a 24-hour volume surge of 82.26% happened amid a price crash of close to 13.97%. MATIC is trading at $0.87 at the time of publication.</p>
 <figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="96" src="https://cdn.thebittimes.com/images/2024/01/04/c22975ef64cffc199e471fb32f176cb3.webp" alt class="wp-image-146955" srcset="https://cdn.thebittimes.com/images/2024/01/04/c22975ef64cffc199e471fb32f176cb3.webp 1024w, https://cdn.thebittimes.com/images/2024/01/04/c22975ef64cffc199e471fb32f176cb3.webp 300w, https://cdn.thebittimes.com/images/2024/01/04/c22975ef64cffc199e471fb32f176cb3.webp 768w, https://cdn.thebittimes.com/images/2024/01/04/c22975ef64cffc199e471fb32f176cb3.webp 1536w, https://cdn.thebittimes.com/images/2024/01/04/c22975ef64cffc199e471fb32f176cb3.webp 1892w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   MATIC derivatives market 24-hour volume. Source: <em>CoinGlass</em>
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       <h3 class="font-bold leading-6 " id="bitcoin-and-ethereum-short-squeezed-on-january-2-for-massive-liquidations">Bitcoin and Ethereum short-squeezed on January 2 for massive liquidations</h3>
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 <p class="paragraph">Notably, this has been a constant for Polygon, building massive liquidity upwards. It is possible to see thousands of dollars worth of liquidations in the 3-day time frame. In the case of a short squeeze, MATIC could be driven to as high as $1.05, after hitting the massive target at $1.035.</p>
 <figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="552" src="https://cdn.thebittimes.com/images/2024/01/04/ec1c8dbef710c83b3e43d7df81c131d7.webp" alt class="wp-image-146956" srcset="https://cdn.thebittimes.com/images/2024/01/04/ec1c8dbef710c83b3e43d7df81c131d7.webp 1024w, https://cdn.thebittimes.com/images/2024/01/04/ec1c8dbef710c83b3e43d7df81c131d7.webp 300w, https://cdn.thebittimes.com/images/2024/01/04/ec1c8dbef710c83b3e43d7df81c131d7.webp 768w, https://cdn.thebittimes.com/images/2024/01/04/ec1c8dbef710c83b3e43d7df81c131d7.webp 1536w, https://cdn.thebittimes.com/images/2024/01/04/ec1c8dbef710c83b3e43d7df81c131d7.webp 2040w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   MATIC 3-day liquidation heatmap. Source: <em>CoinGlass</em>
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 </figure>
 <h2 class="wp-block-heading" id="will-cardano-ada-skyrocket-with-a-short-squeeze-event">Will Cardano (ADA) skyrocket with a short-squeeze event?</h2>
 <p class="paragraph">Another highly shorted cryptocurrency on January 3 is Cardano (ADA), with $622.82 million (53.68%) of opened shorts. Its native token, ADA, trades at $0.54 by press time, losing 13.24% in 24 hours.</p>
 <p class="paragraph">Just like Polygon, Cardano has also experienced a spike in the volume of its derivatives. Interestingly, this observed volatility makes it more likely for a short-<a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> event to happen at any moment.</p>
 <figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="96" src="https://cdn.thebittimes.com/images/2024/01/04/d1e4d93f149534fa8ba96257d9133a89.webp" alt class="wp-image-146957" srcset="https://cdn.thebittimes.com/images/2024/01/04/d1e4d93f149534fa8ba96257d9133a89.webp 1024w, https://cdn.thebittimes.com/images/2024/01/04/d1e4d93f149534fa8ba96257d9133a89.webp 300w, https://cdn.thebittimes.com/images/2024/01/04/d1e4d93f149534fa8ba96257d9133a89.webp 768w, https://cdn.thebittimes.com/images/2024/01/04/d1e4d93f149534fa8ba96257d9133a89.webp 1536w, https://cdn.thebittimes.com/images/2024/01/04/d1e4d93f149534fa8ba96257d9133a89.webp 1892w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   ADA derivatives market 24-hour volume. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
 <p class="paragraph">Additionally, Cardano’s liquidation heatmap also shows massive liquidity spots upward. Market makers can use these liquidity pools as price targets to increase their profits while liquidating traders.</p>
 <p class="paragraph">For ADA, a short squeeze could make it skyrocket to as high as $0.65 after liquidating short-sellers at $0.63 and $0.64.</p>
 <figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="552" src="https://cdn.thebittimes.com/images/2024/01/04/4a57003a9361b8e2e57334316ded1708.webp" alt class="wp-image-146958" srcset="https://cdn.thebittimes.com/images/2024/01/04/4a57003a9361b8e2e57334316ded1708.webp 1024w, https://cdn.thebittimes.com/images/2024/01/04/4a57003a9361b8e2e57334316ded1708.webp 300w, https://cdn.thebittimes.com/images/2024/01/04/4a57003a9361b8e2e57334316ded1708.webp 768w, https://cdn.thebittimes.com/images/2024/01/04/4a57003a9361b8e2e57334316ded1708.webp 1536w, https://cdn.thebittimes.com/images/2024/01/04/4a57003a9361b8e2e57334316ded1708.webp 2040w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   ADA 3-day liquidation heatmap. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
 <p class="paragraph">All things considered, there are no guarantees that such an event will happen with these <a rel="noopener noreferrer nofollow" title="cryptocurrencies" href="https://thebittimes.com/tag/cryptocurrencies.html">cryptocurrencies</a>. Investors and speculators must do their own research and consider multiple 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="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/short-squeeze-alert-for-january-3-two-cryptocurrencies-with-potential-to-skyrocket-tbt75532.html">https://thebittimes.com/short-squeeze-alert-for-january-3-two-cryptocurrencies-with-potential-to-skyrocket-tbt75532.html</a></p>

Short squeeze alert for January 3: Two cryptocurrencies with potential to skyrocket

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