Short Squeeze Opportunity on Dogecoin and Popular Altcoin: Here Are the Rally Targets!

Cryptocurrency continues to look for room to move up at a time when the market is relatively consolidated. This process caused some altcoins to experience short squeezes. Two major altcoins such as Filecoin and Dogecoin appear to be in a short squeeze phase, while DOGE is also showing a squeeze on a higher timeframe. Therefore, the probability of a short squeeze to change on the DOGE front can change at any time.

A short squeeze, also referred to as a "short squeeze", refers to the pressure faced by traders who open "short positions" on the decline of the asset's price to close their positions after a rise in price. As this happens, positions are liquidated and the price increases, and as the price increases, the remaining remaining positions continue to be liquidated.

As Koinfinans.com reported, according to CoinGlass' 3-day and weekly heatmaps, Filecoin is the only crypto asset with significant short open interest. Reaching these liquidations could push FIL as high as $5.5 this week. That's about a 4% gain from the current price of $5.29.

Dogecoin accumulated enough open interest in short positions to experience a short squeeze in February. Notably, this concentrated liquidity pool is targeting $0.0948 per coin on the monthly timeframe.

This could mean a 17% increase for the meme coin and will penalize DOGE's short sellers. However, Dogecoin's lower timeframes are recording some fresh liquidity to the downside from traders with long positions, which may face liquidation before a pump.

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