Market indicators are signaling a potential short squeeze for two altcoins, BNB Chain (BNB) and Toncoin (TON). A short squeeze occurs when a heavily shorted asset's price surges, forcing short sellers to close their positions, further driving up the price. Investors are keeping a close eye on these signals, as they could lead to significant price movements.

BNB and TON are showing signs of upward price movement, with BNB holding the seventh-largest open interest in the market and the second-highest negative funding rate. Short sellers are paying long position investors an annual percentage rate (APR) of 64%, making a short squeeze likely. This could drive BNB's price to a significant liquidation pool around $610 per token, resulting in a 5% gain for investors entering at current prices.

TON is also a potential short squeeze candidate, with an excessively negative funding rate of 111.95%, the worst among crypto derivatives. Although its open interest is lower than BNB's, the severe negative funding rate suggests a reversal in the downtrend could trigger a short squeeze. TON currently has two notable liquidity pools for short position liquidations at $7.2 and $7.4 per token, and could rise by 10% in a short squeeze.

However, investors remain cautious due to the volatile nature of the market. Other factors could prevent the anticipated trend reversals, and leveraged positions carry significant risks. Effective risk management is crucial for investors. In summary, market conditions and specific indicators suggest BNB and TON may soon experience a short squeeze, but investors must remain vigilant and cautious.