Short Squeeze Alert for Uniswap (UNI)
In the 12-hour time frame, UNI has recorded $39.14 million in short positions compared to $32.83 million in long positions, accounting for 54.39% of the former. However, the 24-hour period is where UNI’s significance becomes more evident, with $113.58 million in shorts (52.77%) open.
Given its current liquidity, a sentiment shift regarding Uniswap could potentially trigger a massive short squeeze for UNI.
Will Aave (AAVE) Face a Short Squeeze?
Meanwhile, cryptocurrency short-sellers have also set their sights on the Aave Protocol. AAVE’s token has witnessed $28.21 million and $75.03 million in short positions opened in the last 12 and 24 hours, respectively. Notably, this means that shorts dominate with a respective dominance of 54.29% and 53.10% against longs.
Despite its higher weight in the long/short ratio, a short squeeze for AAVE may have a relatively lower impact on price compared to UNI. This is due to AAVE’s higher 24-hour exchange volume of $122.16 million, which surpasses the daily shorted positions.
As of now, Uniswap and Aave are trading at $6.2 and $91.76 per token, respectively.
It’s worth noting that cryptocurrency traders are eagerly anticipating an altseason, in which these digital assets could play a significant role by triggering a short squeeze. A short squeeze occurs when bearish positions get liquidated, resulting in increased demand and price. The surge in demand leads to a high volume of buy orders, which subsequently liquidates exchange books, driving up the price and triggering derivative contracts for liquidation, further boosting the price.
Although these potential events could unfold for these cryptocurrencies, no guarantees can be made at this time.