Short Squeeze Alert: XRP and BNB Chain Could Surge on January 9

Cryptocurrency markets witnessed a $4,000 rally in Bitcoin (BTC) on January 8, resulting in a 10% gain. Some cryptocurrencies, notably XRP (XRP) and BNB Chain (BNB), lag behind in this bull rally, dominated by short positions.

XRP's Potential Short Squeeze Targets

XRP's liquidation heatmap highlights three liquidity pools at $0.583, $0.590, and $0.592. Despite being low in value, not exceeding $1,560 each, they present short-squeeze opportunities. However, the low volume of XRP in the derivatives market, down by 45% in the last 24 hours, raises concerns.

At present, XRP trades at $0.569, with short positions accounting for $577.09 million in the last 24 hours. Short-sellers hold 51.82% of the short-term interest, indicating a potential for a short squeeze.

BNB Chain's Short Squeeze Targets

Meanwhile, BNB Chain's native token faces massive shorting, with three main short-squeeze targets at $311.9, $312.4, and $313.3, each with over $1 million in liquidations. BNB's higher available liquidity makes it more susceptible to a short squeeze than XRP.

BNB is currently trading at $304.97, with $367.36 million in short positions opened during the day. Short-sellers dominate 50.36% of the $705.9 million volume. However, the low volume for both cryptocurrencies suggests a potential shift in the scenario, especially if significant long positions surge, favoring bulls' liquidations and potentially driving prices downwards.

While short-squeeze opportunities exist, the overall low trading volume for both cryptocurrencies raises uncertainties. Traders should monitor the market closely for potential shifts in the scenario.