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Short positions in two altcoins have shown an increase in the last 12 to 24 hours. This trend may indicate a downward movement in the cryptocurrency market. Despite this, the increasing volume may bring short position opportunities for investors eyeing a rise.
Developments on the Avalanche (AVAX) and Arbitrum (ARB) fronts are particularly noteworthy. The presence of short positions compared to the total long positions in the derivative market signifies a notable trading difference.
The Future of Avalanche (AVAX) Coin
In the past 12 hours, there was $127.01 million in long positions against $141.14 million in short positions (52.63%) in AVAX. In the last 24 hours, there was a similar presence with $251.55 million in long positions against $274.06 million in short positions (52.14%).
Interestingly, at the time of writing, AVAX was trading at $20.92, indicating a daily gain of 1.16%. This discrepancy in price movement and the growing interest in short positions could create a suitable environment for a short squeeze.
Moreover, data from CoinMarketCap shows that the weight of short positions accounts for 80% of AVAX’s daily trading volume of $336.23 million.
The Future of Arbitrum (ARB) Coin
In Arbitrum, there are $96.49 million in long positions against $110.22 million in short positions (53.32%) in the last 24 hours. The 12-hour long/short ratio in short positions is higher than expected, with 54% of all investors opening trades in anticipation of a market reversal.
Additionally, ARB’s price is on the move, trading at $1.02, up 0.35% for the day. Unlike AVAX, Arbitrum shorts only make up 55% of the $198.50 million daily trading volume.
This situation could represent a trend reversal for the altcoin if the divergence triggers a price movement and the sentiment around ARB remains unchanged. However, the heavy weighting against long positions may incentivize market makers to target this current liquidity. Still, it’s important to note that there is no guarantee of a short-term squeeze in cryptocurrencies.
- Short positions in altcoins suggest market caution.
- AVAX and ARB show distinct trading patterns.
- Market dynamics hint at potential price movements.
