In the last 12 to 24 hours, an increase in short positions has been observed in two alternative cryptocurrencies (altcoins). This situation indicates that there might be a downtrend in the cryptocurrency market. However, the increasing volume can offer short position opportunities to investors.
Developments in Avalanche (AVAX) and Arbitrum (ARB) cryptocurrencies are particularly noteworthy. Compared to the total long positions in the derivative market, the existence of short positions shows a significant trading difference.
In AVAX, there are short positions worth $141.14 million (52.63%) against long positions of $127.01 million in the last 12 hours. A similar situation exists in the last 24 hours; there are short positions amounting to $274.06 million (52.14%) against long positions of $251.55 million.
Interestingly, at the time of writing, AVAX is trading at $20.92 with a daily gain of 1.16%. This contradiction in price movement and the increasing interest in short positions could create an environment conducive to a short squeeze.
In Arbitrum, there are short positions amounting to $110.22 million (53.32%) compared to long positions of $96.49 million in the last 24 hours. This indicates that the proportion of investors opening trades with the expectation of a market reversal is higher than expected.