A closely followed crypto strategist thinks that short squeezes are in sight for a newly launched altcoin running on the Ethereum (ETH) blockchain.
Popular crypto analyst Cantering Clark tells his 160,600 Twitter followers that he has his eye on Blur (BLUR), a non-fungible marketplace project.
According to the analyst, traders are betting against the ETH-based altcoin, opening the doors for a violent move to the upside should BLUR gather bullish momentum.
“The leading exchange by volume and open interest for BLUR is OKX. Funding is currently going negative as open interest builds similar to the start of the first leg, when people hedged with the introduction of perps.
Me thinks we have more squeezes ahead.”
A short squeeze happens when traders who borrow an asset at a certain price in hopes of selling it for lower to pocket the difference are forced to buy back the assets they borrowed as momentum moves against them, triggering further rallies.
In the case of BLUR, Cantering Clark believes the altcoin could surge to its all-time high as long as it trades above $1.
“Acceptance above $1 again leading to a quick move back to the all-time high. Right now, I think holding the high is going to lead to a similar measured move. The most recent VWAP [volume weighted average price] is from the $1 break. Looks bullish. $1.50 seems reasonable.”
At time of writing, BLUR is worth $1.27, suggesting an upside potential of nearly 300% if it reaches its all-time high of $5.02.
Looking at Ethereum itself, Cantering Clark says that it is within the realm of possibility that ETH could be mirroring its 2019 market structure when it managed to rally from below $100 to $400 prior to a correction back to around $100.
“Alright ETH heads, take a hit of your pipe and hear me out.
But try not to fomo [fear of missing out]…
S Y M M E T R Y.”
Looking at the trader’s chart, he appears to suggest that ETH could rally above $2,000 before another major correction, should Ethereum mimic its 2019 price action.
At time of writing, ETH is worth $1,677.
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/YanaBu
Source: https://dailyhodl.com/2023/02/20/top-trader-says-short-squeeze-to-new-all-time-high-imminent-for-new-ethereum-based-altcoin/