$ALLO right now is a pretty clean example of how shorts get squeezed.
Over the last few days, the token from the Allora project went up hard. More than 200% in just a few days, and around 128% in the last 24 hours alone. Itâs clearly a speculative move. Basically, someone saw that there were way too many shorts on the market and decided to push them out. It didnât even require that much money, so it happened pretty easily.
The project itself still looks solid. From the bottom, the token is already up more than 8x. Weâre currently sitting about 48% below its all-time high. The chart since the launch back in November 2025 looks like the token was just sitting in a wide range for a long time, kind of trapped between two walls. There wasnât really any strong accumulation visible. So this recent pump isnât because someone was quietly buying for months. Itâs more like smart money just spotted an opportunity and took it.
If you look at the futures charts , the picture becomes clearer.
At first, the price and open interest were rising together. Then open interest started lagging while the price kept going up. This usually means the move is mostly driven by shorts getting liquidated. When those positions get forced closed, the price spikes.
Whatâs even more interesting is the positioning. Regular traders are heavily skewed to the short side -on some exchanges there are almost twice as many shorts as longs. But if you look only at the big players on Binance (the top 20% by account size), the situation is different. By number of accounts, shorts are still more, but when you look at the actual size of their positions, longs are already winning. So the people with real money are starting to bet against the crowd.
Trading volume has also cooled down a lot compared to May 30, when over $3 billion was traded in a single day. Now itâs much lower. Weâre moving in impulses rather than on steady new buying.
Thereâs almost no strong news around the project right now. Twitter and everywhere else is pretty quiet. So itâs still unclear where the price will go after this short squeeze is over.
To be honest, I only recently started paying attention to this token. By the time I noticed it, it had already run up quite a bit. Thatâs why I didnât catch the beginning of this move. If I had seen it earlier, I wouldâve been in already. Today just wasnât my lucky day.
Overall, I like this move more than most pumps lately. It doesnât feel dirty - itâs just classic mechanics where too many people were short and someone decided to squeeze them. That said, Iâm still not ready to enter at current prices. Iâd prefer to see a small pullback, maybe down to the $0.35â0.38 area, and then think about going long from there. If the big players start closing their longs, I also donât want to fight against them.
Right now, between long and short, I lean toward long - but only after a small dip. Letâs see how it plays out.