Unexpected Short Squeeze Coming for Cardano (ADA), Says Analyst Who Called 2022 Crypto Correction

A closely followed crypto analyst is predicting a sudden short squeeze for top Ethereum (ETH) rival Cardano (ADA).

The pseudonymous analyst Capo, known for calling the 2022 crypto market collapse, says that a sharp relief rally awaits many crypto assets.

According to the crypto strategist, the rally will likely be fueled by traders who are betting on the crypto markets to correct in a straight line.

“Late shorts about to get very rekt.”

A short squeeze happens when traders who borrow units of an asset at a certain price in hopes of selling lower to pocket the difference (short) are forced to buy back as the trade moves against their bias.

Amid the short squeeze, Capo predicts a 20% rally for Cardano from its current price of $0.43 to $0.52.

Source: Capo/Twitter

Capo has a similar outlook on leading smart contract platform Ethereum. According to the analyst, the second crypto asset by market cap is looking at a 23% rally to the $1,800 level.

“ETH.

Short squeeze to $1,800 is still likely. Then new lows.”

Source: Capo/Twitter

At time of writing, Ethereum is valued at $1,453, down over 2% on the day.

Looking at Bitcoin, the popular analyst says with BTC already hitting the $20,000 level, he’s next looking at a relief rally to $23,000 before another implosion to the $16,000 range.

Capo says too many traders are confident on BTC breaking through $19,000 for price to continue in a sustained downtrend. He says an unexpected squeeze will punish short sellers late to the game.

“Much more people expecting $19,000 than those expecting $23,000. Funding says it all. Also, there’s a lot of juicy liquidity above $21,000. Squeeze those shorts.”

At time of writing, Bitcoin is trading at $19,847, flat on the day.

Source