Chainlink, one of the most popular Defi Tokens as of late, has suddenly climbed high enough to begin liquidating quite a few Short contracts, one trade alone was liquidated at $11.79 with over $21 Million put down, and another $15 Million borrowed. $36 Million liquidated, and the price went up to hit just under $14 per token.
It is said that HUNDREDS of millions of dollars were liquidated in minutes during this short squeeze.
During a short squeeze, as the price jumps up to the liquidation price, some investors start going long to hedge against their loss. The loss here can be HUGE, as we are talking about options trading on Margins, where tokens are bought at 100 per block, with borrowed money. The investors going long causes the price to get drived up even more, as we saw here, where the price went up over 50% from $9.17 up to $13.79.
All short positions that were on the table under that price have been liquidated, or are about to be. So that explains the sudden jump in price. Even though the market sentiment may seem bearish at this moment, it is hard to want to short a coin shooting up in price at this velocity.
The reason I like Chainlink so much - other than fundamentals - is its ability to outpace Bitcoin so far. It has done so on several occasions I noticed, which is when I got a solid chunk ($7.50 ish). But it's all speculative.
AJFG
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@Shwayze, Already reached my three targets, now i'm just waiting to see if "target Moon ", at 16-something , can come into play. Unlikely, but i saw a C&H, thought of waiting a bit, see where this goes. Link/BTC is hands down, best chart in Crypto. And , just a reminder , we barely made it into the Awareness phase.
played out almost exactly. Caught the Head and Shoulders before it happened too - if you look further down on this chart in the updates
AJFG
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@Shwayze, Yeah, that's it , bro, you nailed it ! Since we're so like minded with patterns, can u do me a solid ? Pull up BTC/USD, and tell me BTC isn't about to pop out from a simetric triangle, tonight, tomorrow at most . Aug 3rd, 4th and 5th, wicking down , from then on, wicking up. Today, it's cutting both ways. Textbook BTC, making you second guess yourself into rekt city.
Shwayze
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@AJFG, I've actually had my eye on it, since were in an area of value, and was looking at the candlesticks. The updates to the idea are where I show the more recent
Shwayze
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But will draw up with trend lines and see what's going on
AJFG
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@Shwayze, Yesterday, i was looking at the 1h chart, and the last dump seemed to have completed a H&S. That got my attention. Drew the triangle ( yes, i hate diagonals, but whatever ) , i'm just waiting for it to pop, to make bank on Link. Maybe an allnighter, tonight.