Aave

Cryptocurrency

Uniswap

Bitcoin

Gold

<div class="finbold">
 <p class="paragraph">Bitcoin (BTC) and most of the top <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currencies experienced a price retracement earlier this week. With a momentary sentiment shift from bullish to bearish, short positions increased in the <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currency market.</p>
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 <p class="paragraph">In this context, Finbold retrieved data from <em>CoinGlass’s</em> long/short ratio on December 12. Interestingly, two <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currencies could face an imminent short <a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a>, driving prices upwards amid the shifting market movements.</p>
 <p class="paragraph">Particularly, Uniswap (UNI) and Aave (AAVE) have seen a relevant increase in the opened short positions in the last 12 and 24 hours. Both are among the most popular decentralized finance (DeFi) protocols with multi-chain support.</p>
 <h2 class="wp-block-heading" id="h-short-squeeze-alert-for-uniswap-uni">Short squeeze alert for Uniswap (UNI)</h2>
 <p class="paragraph">Uniswap has the most relevant short-sellers volume and short position weight against the opened long positions. In the 12-hour time frame, UNI registers $39.14 million shorts over the $32.83 million longs, for 54.39% of the former.</p>
 <figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="56" src="https://cdn.thebittimes.com/images/2023/12/12/a4e90b98e2f26ed9f2fe7bf95c16bc80.webp" alt class="wp-image-142693" srcset="https://cdn.thebittimes.com/images/2023/12/12/a4e90b98e2f26ed9f2fe7bf95c16bc80.webp 1024w, https://cdn.thebittimes.com/images/2023/12/12/a4e90b98e2f26ed9f2fe7bf95c16bc80.webp 300w, https://cdn.thebittimes.com/images/2023/12/12/a4e90b98e2f26ed9f2fe7bf95c16bc80.webp 768w, https://cdn.thebittimes.com/images/2023/12/12/a4e90b98e2f26ed9f2fe7bf95c16bc80.webp 1536w, https://cdn.thebittimes.com/images/2023/12/12/a4e90b98e2f26ed9f2fe7bf95c16bc80.webp 1958w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   UNI Long/Short ratio on 12 and 24 hours. Source: <em>CoinGlass</em>
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 <p class="paragraph">However, its overall relevancy is mostly in the 24-hour period, with $113.58 million shorts (52.77%) opened. This is almost the same amount as its daily exchange volume of $141.21 million, according to <em>CoinMarketCap</em>.</p>
 <figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="564" height="224" src="https://cdn.thebittimes.com/images/2023/12/12/6563b1c3509231c1993de37d828510ab.webp" alt class="wp-image-142694" srcset="https://cdn.thebittimes.com/images/2023/12/12/6563b1c3509231c1993de37d828510ab.webp 564w, https://cdn.thebittimes.com/images/2023/12/12/6563b1c3509231c1993de37d828510ab.webp 300w" sizes="(max-width: 564px) 100vw, 564px">
  <figcaption class="wp-element-caption">
   Uniswap market cap and volume (24h). Source: <em>CoinMarketCap</em>
  </figcaption>
 </figure>
 <p class="paragraph">Therefore, a sentiment shift on Uniswap could trigger a massive short <a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> on UNI, considering its current liquidity.</p>
 <h2 class="wp-block-heading" id="will-aave-aave-face-a-short-squeeze">Will Aave (AAVE) face a short squeeze?</h2>
 <p class="paragraph">In the meantime, the Aave Protocol is also being targeted by cryptocurrency short-sellers. Its token AAVE has $28.21 million, and $75.03 million short positions opened in the last 12 and 24 hours, respectively. Interestingly, this means a 54.29% and 53.10% respective dominance against longs.</p>
 <figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="55" src="https://cdn.thebittimes.com/images/2023/12/12/3220d73d5efe5ab6a2a102e42276bb76.webp" alt class="wp-image-142695" srcset="https://cdn.thebittimes.com/images/2023/12/12/3220d73d5efe5ab6a2a102e42276bb76.webp 1024w, https://cdn.thebittimes.com/images/2023/12/12/3220d73d5efe5ab6a2a102e42276bb76.webp 300w, https://cdn.thebittimes.com/images/2023/12/12/3220d73d5efe5ab6a2a102e42276bb76.webp 768w, https://cdn.thebittimes.com/images/2023/12/12/3220d73d5efe5ab6a2a102e42276bb76.webp 1536w, https://cdn.thebittimes.com/images/2023/12/12/3220d73d5efe5ab6a2a102e42276bb76.webp 1958w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   AAVE Long/Short ratio on 12 and 24 hours. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
 <p class="paragraph">Despite having a higher weight on its long/short ratio, a short <a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> for AAVE would probably have a lower impact on price than UNI’s. This is due to a higher 24-hour exchange volume of $122.16 million in comparison with the daily shorted positions.</p>
 <figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="576" height="232" src="https://cdn.thebittimes.com/images/2023/12/12/d8848e6fdcdcd3b3eb7b43bed758d1d9.webp" alt class="wp-image-142696" srcset="https://cdn.thebittimes.com/images/2023/12/12/d8848e6fdcdcd3b3eb7b43bed758d1d9.webp 576w, https://cdn.thebittimes.com/images/2023/12/12/d8848e6fdcdcd3b3eb7b43bed758d1d9.webp 300w" sizes="(max-width: 576px) 100vw, 576px">
  <figcaption class="wp-element-caption">
   Aave Protocol market cap and volume (24h). Source: <em>CoinMarketCap</em>
  </figcaption>
 </figure>
 <p class="paragraph">At the time of publication, Uniswap and Aave are trading at $6.2 and $91.76 per token, respectively.&nbsp;</p>
 <p class="paragraph">Notably, cryptocurrency traders are eagerly expecting an altseason, which both digital assets could help trigger after a short squeeze, which occurs when these bearish positions get liquidated, facing a surge in demand and price. The increased demand causes a high volume of buy orders to liquidate exchange books, pumping the price and triggering derivative contracts for liquidation, driving the price even further.</p>
 <p class="paragraph">All things considered, there are no guarantees that such an event will happen with these cryptocurrencies.</p>
 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p>
 <p class="paragraph"></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/short-squeeze-alert-for-december-12-two-cryptocurrencies-with-potential-to-skyrocket-tbt73413.html">https://thebittimes.com/short-squeeze-alert-for-december-12-two-cryptocurrencies-with-potential-to-skyrocket-tbt73413.html</a></p>

Short squeeze alert for December 12: Two cryptocurrencies with potential to skyrocket

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