Price: $0.38979 1.9158%
Market Cap: 57.26B 1.7423%
Volume (24h): 8.66B 0.4%
Dominance: 1.7423%
Price: $0.38979 1.9158%
Market Cap: 57.26B 1.7423%
Volume (24h): 8.66B 0.4%
Dominance: 1.7423% 1.7423%
  • Price: $0.38979 1.9158%
  • Market Cap: 57.26B 1.7423%
  • Volume (24h): 8.66B 0.4%
  • Dominance: 1.7423% 1.7423%
  • Price: $0.38979 1.9158%
Home > Information news > Significant Increase in Crypto Derivatives Volume Leads to Potential Short Squeeze

Significant Increase in Crypto Derivatives Volume Leads to Potential Short Squeeze

Release: 2023/12/22 06:17 Reading: 492

Original author:COINTURK NEWS

Original source:https://coinmarketcap.com/community/articles/658452efb7919310126a455f

Crypto derivatives have seen a significant increase in volume, which could lead to potential imbalances that may trigger liquidation events. This situation has caused an increase in short positions for certain cryptocurrencies. If these positions are liquidated, the likelihood of a short squeeze increases, which means a price rally. So, for which altcoins is this increase valid?

Market Overview and Short Squeeze Potential

While the total value of the crypto market has increased by 1.5% to reach $1.614 trillion, its highest level in 10 days, attention is now focused on cryptocurrencies with high short positions, especially if the market value exceeds this month’s highest levels.

Among the cryptocurrencies with increased short positions, the cryptocurrency Dogecoin (DOGE) stands out. Currently trading at $0.0926, DOGE has an open short position amount of $514.56 million, which corresponds to 51.31% of the daily open position volume.

This significant dollar value is close to the 24-hour spot exchange volume of $550.27 million and makes the liquidation of short positions impactful on the price of the meme coin DOGE.

Short Squeeze Warning for dYdX (DYDX)

Simultaneously, the cryptocurrency dYdX (DYDX) witnessed a $188.57 million short position opened on December 21st. The cryptocurrency is trading at $2.957. Despite the 24-hour volume of only $132.69 million, which indicates a larger short position than current market activity, DYDX requires a market turnaround from a downturn to an upturn for a short squeeze to occur.

Recent significant changes such as token migration and the unlocking of over 80% of the circulating supply have added complexity to DYDX’s market dynamics. While the potential for a short squeeze is becoming apparent, it is important to note that a market turnaround is very significant for these events to occur.

Factors such as recent token migrations and unlocking of supply locks can influence investors’ perception of the value of a digital asset. Investors are advised to conduct thorough research and consider complementary data to make informed and profitable financial decisions.

Continue Reading: https://en.coin-turk.com/significant-increase-in-crypto-derivatives-volume-leads-to-potential-short-squeeze/

Selected Topics

  • Dogecoin whale activity
    Dogecoin whale activity
    Get the latest insights into Dogecoin whale activities with our comprehensive analysis. Discover trends, patterns, and the impact of these whales on the Dogecoin market. Stay informed with our expert analysis and stay ahead in your cryptocurrency journey.
  • Dogecoin Mining
    Dogecoin Mining
    Dogecoin mining is the process of adding new blocks of transactions to the Dogecoin blockchain. Miners are rewarded with new Dogecoin for their work. This topic provides articles related to Dogecoin mining, including how to mine Dogecoin, the best mining hardware and software, and the profitability of Dogecoin mining.
  • Spacex Starship Launch
    Spacex Starship Launch
    This topic provides articles related to SpaceX Starship launches, including launch dates, mission details, and launch status. Stay up to date on the latest SpaceX Starship launches with this informative and comprehensive resource.
  • King of Memes: Dogecoin
    King of Memes: Dogecoin
    This topic provides articles related to the most popular memes, including "The King of Memes: Dogecoin." Memecoin has become a dominant player in the crypto space. These digital assets are popular for a variety of reasons. They drive the most innovative aspects of blockchain.