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.
Comment
â‹…
Another interesting note: Total marketcap of LUNA: ~ 250 million Open interest on Binance: ~ 650 million
Comment
â‹…
Just in:
Binance going to DELIST Luna from cross/isolated margin trading.
Think this idea was potted as a hopium no more crypto no more posting then what will you do? Luna dead and crypto will be wiped away from existence all for what? #greed!
FieryTrading
â‹…
@KINGdewd, short-squeeze is not guaranteed to happen. Probability with Binance closing all futures contracts has decreased a lot. Nevertheless, there's surely some upside potential for a coin that went $60 > $0.005 in a couple of days.
KINGdewd
â‹…
@FieryTrading, LUNA.INU sure is making a hasty upside being quad zero. Faster than SHIBA ever did
Solldy
â‹…
Well, given recent price movements, I honestly don't think this scenario is possible. There is no clear visual representation of the structure.
#greed!