Cardano Ecosystem

Crypto News Flash (EN)




Cardano (ADA) and XRP Rebound Sparks Surge in Short Positions

The recent daily surge in the price of XRP and ADA has been triggered by an increasing wave of short positions.  While this is said to be a good suggestion for growing market confidence, analysts believe...

Cardano (ADA) and XRP Rebound Sparks Surge in Short Positions
  • The recent daily surge in the price of XRP and ADA has been triggered by an increasing wave of short positions. 
  • While this is said to be a good suggestion for growing market confidence, analysts believe that it could also lead to potential market volatility.

The crypto market recorded a sudden rebound with Cardano (ADA) surging by more than 4% before flipping back into the “red zone” to trade at $0.39. 

Similarly, XRP jumped by 3% in just 24 hours to trade at $0.49. 

Investigating this unexpected run, crypto market intelligence platform Santiment disclosed that the renewed rally was triggered by a new wave of opened short positions. To them, traders did not find enough confidence in the relief rally sparked by the recent decision by the US Securities and Exchange Commission (SEC) to withdraw the security probe into Ethereum. According to data, this is the most prominent shorting vs longing ratio for ADA in the last nine months with XRP’s bearish to bullish bet ratio recording its highest figure in over a month. 

Per our data, the heavy shorting resulted in a downward pressure, pushing both ADA and XRP into the “red zone” on Wednesday night. According to Santiment, this behavior is rather a good sign for bullish traders. It is important to note that this could also lead to a significant liquidation and a short squeeze once the market moves against these positions. On the other side, the decision by short sellers to exit their position with buy orders could also push the price up. 

Cardano and XRP are a couple of the most notable altcoins that are seeing heavy traders shorting following relief bounces. This is a good sign for patient bulls, as liquidate shorts can effectively act as ‘rocket fuel’ for continued price rises.

CryptoQuant’s report on XRP and ADA

Another report by CryptoQuant also highlights that Open Interest in XRP has been on an impressive surge, suggesting growing market confidence and heightened trading activity around the asset. Regardless of this suggesting a bullish sentiment and a potential price appreciation for the asset, CryptoQuant Open Interest is a two-edged sword that can also lead to potential market volatility. 

Contrary to the rise in Open Interest, crowd sentiment is reported to have fallen significantly for Cardano alongside Shiba Inu and Dogecoin. 

Crowd sentiment has dropped significantly for XRP, Dogecoin, and Shiba Inu after their respective price drops. Patient traders who have been waiting for the crowd to give up on these large-cap altcoins may finally have their buy opportunity with FOMO at 2024 low.

Against the backdrop of some of the bullish signals, the XRP spot market recorded a $102.7 million outflow on June 19 after most holders decided to sell their assets and reduce their exposure. 

The Open Interest for ADA, on the other hand, has been on a steady uptrend since May 2024. Specifically, the Open Interest grew from $190 million on May 1 to $268 million on June 6. 

Outside the realms of the market data, Cardano’s Charles Hoskinson has disclosed the plans for the Cardano blockchain governance including the implementation of decentralized representatives (dReps). According to him, this is expected to be done within 90 days after the Chang hard fork. Interestingly, this follows a recent Crypto News Flash publication disclosing the impending transfer of Cardano’s treasury valued at almost $681.9 million to the community. 

Ripple is also pursuing victory in its court case against SEC, with a favorable outcome expected to send the price to the moon. 

Recommended for you:

Subscribe to our daily newsletter!

          No spam, no lies, only insights. You can unsubscribe at any time.

This article is provided for informational purposes only and is not intended as investment advice. The content does not constitute a recommendation to buy, sell, or hold any securities or financial instruments. Readers should conduct their own research and consult with financial advisors before making investment decisions. The information presented may not be current and could become outdated.

John is a seasoned cryptocurrency and blockchain writer and researcher, boasting an extensive track record of years immersed in the ever-evolving digital frontier. With a profound interest in the dynamic landscape of emerging startups, tokens, and the intricate interplay of demand and supply within the crypto realm, John brings a wealth of knowledge to the table. His academic background is marked by a Bachelor's degree in Geography and Economics, a unique blend that has equipped him with a multifaceted perspective. This diverse educational foundation allows John to dissect the geographical and economic factors influencing the cryptocurrency market, offering insights that go beyond the surface. John's dedication to the crypto and blockchain space is not merely professional but also personal, as he possesses a genuine passion for the technologies that underpin this revolutionary industry. With his astute research skills and commitment to staying at the forefront of industry trends, John is a trusted voice in the world of cryptocurrencies, helping readers navigate the complex and rapidly changing terrain of digital assets and blockchain innovation. John Kiguru is an accomplished editor with a strong affinity for all things blockchain and crypto. Leveraging his editorial expertise, he brings clarity and coherence to complex topics within the decentralized technology sphere. With a meticulous approach, John refines and enhances content, ensuring that each piece resonates with the audience. John earned his Bachelor's degree in Business, Management, Marketing, and Related Support Services from the University of Nairobi. His academic background enriches his ability to grasp and communicate intricate concepts within the blockchain and cryptocurrency space. Business Email: [email protected] Phone: +49 160 92211628


SNEKbot by DexHunter on CARDANO

Cardano's Telegram Trading Bot live on Cardano mainnet!TRADE NOW!

Read Original Article on Crypto News Flash (EN)



Disclaimer: Cardano Feed is a Decentralized News Aggregator that enables journalists, influencers, editors, publishers, websites and community members to share news about the Cardano Ecosystem. User must always do their own research and none of those articles are financial advices. The content is for informational purposes only and does not necessarily reflect our opinion.

Rare Evo: A Blockchain Event

More from Crypto News Flash (EN)

See more
Cardano's ADA Stuck at $0.44: Can Decentralized Exchange Activity Propel the Price Forward?
Crypto News Flash (EN)
Cardano's ADA Stuck at $0.44: Can Decentralized Exchange Activity Propel the Price Forward?

last Friday at 4:30 PM



Related News

See more

Argentina Digital Nation 2024
Rare Evo: A Blockchain Event
Argentina Digital Nation 2024

Featured News

See more