Short squeeze alert for November 23: Two cryptocurrencies with potential to skyrocket

After a few days of high volatility, the cryptocurrency market showed low volatility on November 23. As it happens, trading volume plummets, reflecting a momentary lack of speculative open interest in long and short positions.

Nevertheless, it is still possible to find short squeeze potential even amid a reduced open interest volume. In particular, by looking into the correlation between opened short positions and the traded volume in a given time frame.

Notably, four projects have a growing potential for a short squeeze if sentiment shifts from bearish to bullish until the weekend ends.

Bitcoin Cash (BCH) has $52.61 million of opened short positions in the last 12 hours, accruing for 52.62% of its 12-hour open interest.

Moreover, Avalanche (AVAX) has $216.49 million (51.83%), Polkadot (DOT) has $44.55 million (52.51%), and the Tellor Network token Tributes (TRB) has $120.21 million (52.25%).

In this context, Finbold looked into these cryptocurrencies‘ market capitalization and exchange volume to filter two out of the four that are more likely to see a short squeeze.

Tellor (TRB)

Particularly, TRB has the highest weight in its opened short positions. The $120.21 million shorts opened in the last 12 hours are 2.4 times higher than Tellor’s 24-hour exchange volume of $49.48 million.

Additionally, the short positions open interest capitalization is a little less than half of its total market cap of $222.51 million. Raising relevant alarms for the token’s future.

Investors and traders must be cautious while seeking a short squeeze attempt, considering the token rose 700% in one year. It is important to understand that the increased short positions could be a response to this 12-month run, and TRB could be overbought at this point.

Nevertheless, any meaningful increased demand could be enough to liquidate short-sellers in a low time frame. TRB is trading at $89.43 by press time.

Avalanche (AVAX)

Meanwhile, AVAX is trading at $20.72 with a capitalization of $7.37 billion and a 24-hour volume that is 7.5% of its market cap.

Avalanche has the most relevant weight of short positions related to these metrics, with 41% of the mentioned exchange volume and 2.93% of the total market value.

It is also notable how JPMorgan has chosen Avalanche for its blockchain endeavor, which can bring fresh demand for its native token. Therefore, AVAX could face a potential short squeeze in the coming days.

Interestingly, both Trellor and Avalanche have seen high liquidation events in the past against short-sellers. The bearish dominance could trigger short squeezes for both cryptocurrencies or feed a pivotal downtrend for the rest of the week.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.