Cryptocurrency Short Squeeze Potential: Dogecoin and Chainlink in Focus

Massive Short Positions in Dogecoin (DOGE)

In the last 24 hours, Dogecoin has seen a staggering $718.23 million worth of short positions, significantly impacting the meme-based cryptocurrency. Interestingly, the long positions for DOGE in the same period amounted to $627.60 million, resulting in a ratio of 53.35% to 46.63%.

It is worth noting that Dogecoin’s short positions surpass those of XRP, a cryptocurrency with a larger market capitalization. These short positions also account for 6.5% of Dogecoin’s market cap of $10.94 billion, signifying a potential short squeeze waiting to happen.

Chainlink (LINK) – Bearish Outlook or Short Squeeze?

Chainlink is another cryptocurrency heavily influenced by short positions. We previously highlighted this in our November 17 short squeeze alert. However, despite the anticipation, a short squeeze did not materialize. This suggests a prevailing bearish sentiment, which can be attributed to recent news concerning stablecoins.

Following BlackRock’s disclosure about the risks associated with USDT and USDC for Bitcoin (BTC), the Bank for International Settlements (BIS) published a report emphasizing the drawbacks of stablecoins. This negatively impacted Chainlink’s performance due to its close association with this asset class.

Nevertheless, the last 24 hours witnessed a notable increase in short positions for Chainlink, amounting to $589.77 million. Given Chainlink’s $7.94 billion market capitalization and $649.87 million exchange volume, the current bearish sentiment becomes even more significant, potentially creating opportunities for traders exploring a short squeeze.

It is important to bear in mind that while the potential for short squeezes exists with these cryptocurrencies, as we saw with Chainlink previously, there are no guarantees that they will actually occur.