Cardano (ADA) is expecting a short squeeze. Check out the latest e3rports about the price of ADA below.
ADA price analysis
An important crypto analyst is predicting a sudden short squeeze for top Ethereum (ETH) rival Cardano (ADA).
The pseudonymous analyst Capo has become popular for calling the 2022 crypto market collapse.
He says that a sharp relief rally awaits many crypto assets.
According to the crypto strategist, the rally will likely be fueled by traders who are betting on the crypto markets to correct in a straight line.
“Late shorts about to get very rekt.”
A short squeeze is a move that takes place when traders who borrow units of an asset at a certain price in hopes of selling lower to pocket the difference (short) are forced to buy back as the trade moves against their bias.
Capo has a similar prediction regarding Ethereum. According to the analyst, ETH is looking at a 23% rally to the $1,800 level.
Short squeeze to $1,800 is still likely. Then new lows.”
He also made sure to explain the fact that an unexpected squeeze will punish short sellers late to the game.
“Much more people expecting $19,000 than those expecting $23,000. Funding says it all. Also, there’s a lot of juicy liquidity above $21,000. Squeeze those shorts.”
At the time of writing, Bitcoin is trading at $20,847, and ETH is trading at $1,586.
ETH in the news
According to the latest reports, the crypto exchange Binance will suspend deposits and withdrawals of Ether (ETH) and ERC-20 tokens during the blockchain’s transition to its proof-of-stake (PoS) Beacon chain in September.
The crypto exchange announced the move in a bid to provide stability during The Merge, which is touted to take place in mid-September 2022.
Binance has become the second major exchange to announce the suspension of ETH deposits and withdrawals, following Coinbase earlier in August 2022.