Warning: Two Cryptocurrencies at Risk of Significant Price Drop Next Week
Saturday, 9 March 2024, 17:00
Long Squeeze Alert for Next Week: Two Cryptocurrencies that could Crash
Greed, FOMO, and an overall bullish sentiment dominate the cryptocurrency market, following Bitcoin's (BTC) run to above $70,000. This landscape encourages traders to open long positions, which could lead to a long squeeze.
Understanding the Long Squeeze Phenomenon
A long squeeze occurs when long positions are liquidated in series, creating liquidity pools to the downside that can attract market manipulation.
Analysis of Dogecoin and Pepe
- Dogecoin (DOGE) has accumulated significant longs, but faces liquidity pools indicating a potential long squeeze.
- Pepe (PEPE) has shown impressive gains, but similar liquidity risk makes it susceptible to a dramatic drop.
Investors are advised to exercise caution and consider the risks of long squeezes in the current market environment.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.