🔥 LUNA Can Trigger The Mother Of All Short-Squeezes
Updated
Yesterday I made a post on what's currently happening to LUNA and why I think it will go to zero. In short, the amount of LUNA tokens minted will approach infinity whilst the price for said tokens will be infinitely small.
As seen on the chart, the amount of open interest is op LUNA is going through the roof. There's currently around 700 million of open interest on Binance alone, see orange line. Open interest is borrowed money used for shorting.
This means that there's a MASSIVE amount of shorts open. These shorts will eventually have to be closed by either the trader or when it will be liquidated. Both events will trigger BUY orders.
Yesterday we went around +900% from low to high. With the amount of open interest in the system currently, I wouldn't be surprised if we go +2000% at some point.
Be aware it can take a while before a short-squeeze can trigger. Could realistically happen at every moment.
The blue line represents the Binance FUTURES price / SPOT price. With the Futures trading at a massive (bear) premium, it means that risk-taking is out of control. Trades are waiting to be liquidated, resulting in further bullish pressure.
As seen on the chart, the amount of open interest is op LUNA is going through the roof. There's currently around 700 million of open interest on Binance alone, see orange line. Open interest is borrowed money used for shorting.
This means that there's a MASSIVE amount of shorts open. These shorts will eventually have to be closed by either the trader or when it will be liquidated. Both events will trigger BUY orders.
Yesterday we went around +900% from low to high. With the amount of open interest in the system currently, I wouldn't be surprised if we go +2000% at some point.
Be aware it can take a while before a short-squeeze can trigger. Could realistically happen at every moment.
The blue line represents the Binance FUTURES price / SPOT price. With the Futures trading at a massive (bear) premium, it means that risk-taking is out of control. Trades are waiting to be liquidated, resulting in further bullish pressure.
Comment
Another interesting note:Total marketcap of LUNA: ~ 250 million
Open interest on Binance: ~ 650 million
Comment
Just in:Binance going to DELIST Luna from cross/isolated margin trading.
Comment
Edit to comment above; they're limiting the amount of leverage you can use.binance.com/en/support/announcement/1b73e64616ee4e769c29e70c66728d1a
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