Unexpected Short Squeeze Coming for Cardano (ADA), Says Analyst Who Called 2022 Crypto Correction
A closely followed crypto analyst is predicting a sudden short squeeze for top Ethereum (ETH) rival Cardano (ADA).
The pseudonymous analyst Capo, known for calling the 2022 crypto market collapse, 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 happens 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.
Amid the short squeeze, Capo predicts a 20% rally for Cardano from its current price of $0.43 to $0.52.
Capo has a similar outlook on leading smart contract platform Ethereum. According to the analyst, the second crypto asset by market cap is looking at a 23% rally to the $1,800 level.
Short squeeze to $1,800 is still likely. Then new lows.”
At time of writing, Ethereum is valued at $1,453, down over 2% on the day.
Looking at Bitcoin, the popular analyst says with BTC already hitting the $20,000 level, he’s next looking at a relief rally to $23,000 before another implosion to the $16,000 range.
Capo says too many traders are confident on BTC breaking through $19,000 for price to continue in a sustained downtrend. He says 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 time of writing, Bitcoin is trading at $19,847, flat on the day.
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/iurii/Mingirov Yuriy
The post Unexpected Short Squeeze Coming for Cardano (ADA), Says Analyst Who Called 2022 Crypto Correction appeared first on The Daily Hodl.