Cryptocurrency

Arbitrum

2024

when

<div class="finbold">
 <p class="paragraph">The cryptocurrency market remains in a consolidation range, struggling to decide which direction to follow. In this context, some <a rel="noopener noreferrer nofollow" title="cryptocurrencies" href="https://thebittimes.com/tag/cryptocurrencies.html">cryptocurrencies</a> maintain an increased open interest in short positions, creating short-<a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> opportunities for February.</p>
 <p class="paragraph">A short squeeze happens when short-sellers are liquidated, facing a sudden price surge. These liquidations force traders to repurchase the cryptocurrency, driving the price to higher levels, triggering further liquidations, and potentially making it skyrocket.</p>
 <p class="paragraph">Looking for insights, Finbold gathered data from <em>CoinGlass</em>’s liquidation heatmap on February 6. In particular, we spotted cumulated short liquidations on Arbitrum (ARB) and Curve (CRV) in the monthly time frame.</p>
 <h2 class="wp-block-heading" id="h-short-squeeze-alert-for-arbitrum-arb-in-february">Short squeeze alert for Arbitrum (ARB) in February</h2>
 <p class="paragraph">First, Arbitrum has a heavy liquidity accumulation in the $2.4 price level. More specifically, there are $33,150 in short liquidations at $2.414, making it an appealing target for market makers.</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="554" src="https://cdn.thebittimes.com/images/2024/02/07/11f661121a24e84ed370c50644e09850.webp" alt class="wp-image-153545" srcset="https://cdn.thebittimes.com/images/2024/02/07/11f661121a24e84ed370c50644e09850.webp 1024w, https://cdn.thebittimes.com/images/2024/02/07/11f661121a24e84ed370c50644e09850.webp 300w, https://cdn.thebittimes.com/images/2024/02/07/11f661121a24e84ed370c50644e09850.webp 768w, https://cdn.thebittimes.com/images/2024/02/07/11f661121a24e84ed370c50644e09850.webp 1536w, https://cdn.thebittimes.com/images/2024/02/07/11f661121a24e84ed370c50644e09850.webp 2044w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   ARB 1-month liquidation heatmap. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
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 <p class="paragraph">Meanwhile, ARB is trading at $1.838 by press time, up 4.75% in the last 24 hours. This bullish price action could catalyze a short <a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a>, liquidating the smaller targets until $2.4. Interestingly, such a movement would make Arbitrum <a rel="noopener noreferrer nofollow" title="skyrocket" href="https://thebittimes.com/tag/skyrocket.html">skyrocket</a> for over 30% gains in February.</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="95" src="https://cdn.thebittimes.com/images/2024/02/07/dd84e0c7a06cdb5304e7fd9b43f6db52.webp" alt class="wp-image-153546" srcset="https://cdn.thebittimes.com/images/2024/02/07/dd84e0c7a06cdb5304e7fd9b43f6db52.webp 1024w, https://cdn.thebittimes.com/images/2024/02/07/dd84e0c7a06cdb5304e7fd9b43f6db52.webp 300w, https://cdn.thebittimes.com/images/2024/02/07/dd84e0c7a06cdb5304e7fd9b43f6db52.webp 768w, https://cdn.thebittimes.com/images/2024/02/07/dd84e0c7a06cdb5304e7fd9b43f6db52.webp 1536w, https://cdn.thebittimes.com/images/2024/02/07/dd84e0c7a06cdb5304e7fd9b43f6db52.webp 2000w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   ARB open interest and derivatives market data. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
 <h2 class="wp-block-heading" id="can-curve-crv-skyrocket-in-february">Can Curve (CRV) skyrocket in February?</h2>
 <p class="paragraph">Another likely candidate for a short-<a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> event is Curve DAO’s native token, CRV. It currently has $68.64 million in open interest, with a 0.1324 OI/Market Cap ratio, while trading at $0.471.</p>
 <figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="107" src="https://cdn.thebittimes.com/images/2024/02/07/f7f400baa35f9ac9d22c4e6b6acd0a45.webp" alt class="wp-image-153547" srcset="https://cdn.thebittimes.com/images/2024/02/07/f7f400baa35f9ac9d22c4e6b6acd0a45.webp 1024w, https://cdn.thebittimes.com/images/2024/02/07/f7f400baa35f9ac9d22c4e6b6acd0a45.webp 300w, https://cdn.thebittimes.com/images/2024/02/07/f7f400baa35f9ac9d22c4e6b6acd0a45.webp 768w, https://cdn.thebittimes.com/images/2024/02/07/f7f400baa35f9ac9d22c4e6b6acd0a45.webp 1536w, https://cdn.thebittimes.com/images/2024/02/07/f7f400baa35f9ac9d22c4e6b6acd0a45.webp 1996w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   CRV open interest and derivatives market data. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
 <p class="paragraph">As for the liquidation heatmap, CRV has liquidity for both sides. In this context, the token may experience a brief movement downward before starting to skyrocket.</p>
 <p class="paragraph">Additionally, the most relevant liquidations are at $0.573, but a drop from here could increase short positions and change this scenario for even higher prices, which already have some considerable liquidity.</p>
 <figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="556" src="https://cdn.thebittimes.com/images/2024/02/07/cf2aa898aed9a253b36a659c9658e2b9.webp" alt class="wp-image-153548" srcset="https://cdn.thebittimes.com/images/2024/02/07/cf2aa898aed9a253b36a659c9658e2b9.webp 1024w, https://cdn.thebittimes.com/images/2024/02/07/cf2aa898aed9a253b36a659c9658e2b9.webp 300w, https://cdn.thebittimes.com/images/2024/02/07/cf2aa898aed9a253b36a659c9658e2b9.webp 768w, https://cdn.thebittimes.com/images/2024/02/07/cf2aa898aed9a253b36a659c9658e2b9.webp 1536w, https://cdn.thebittimes.com/images/2024/02/07/cf2aa898aed9a253b36a659c9658e2b9.webp 2040w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   CRV 1-month liquidation heatmap. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
 <p class="paragraph">However, a sentiment shift is still necessary for these short <a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a>s to happen. Cryptocurrencies are highly volatile assets in a market that changes daily. Thus, investors must trade cautiously, following the trends and adapting to each new development.</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>
 <p class="paragraph"></p>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/short-squeeze-alert-for-february-two-cryptocurrencies-about-to-skyrocket-tbt79082.html">https://thebittimes.com/short-squeeze-alert-for-february-two-cryptocurrencies-about-to-skyrocket-tbt79082.html</a></p>

Short squeeze alert for February: Two cryptocurrencies about to skyrocket

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