Logo
Cardano Ecosystem

TheCryptoBasic

06/20/2024

·

91 views


Cardano and XRP See Increased Shorts, But Santiment Unveils How This is Bullish

Santiment has called attention to a predominance of short positions involving Cardano and XRP, suggesting this metric could be bullish for both assets. In the wake of the recent market collapse, prominent...

Cardano and XRP See Increased Shorts, But Santiment Unveils How This is Bullish

Santiment has called attention to a predominance of short positions involving Cardano and XRP, suggesting this metric could be bullish for both assets.

In the wake of the recent market collapse, prominent altcoins Cardano (ADA) and XRP have experienced significant declines. However, analytical insights from Santiment suggest a potential bullish turnaround for these assets. As traders continue to heavily short these cryptocurrencies, certain technical indicators imply that a rebound may be imminent.

Cardano and XRP Record an Increase in Shorts

Santiment recently highlighted on X that Cardano and XRP are currently among the most notable altcoins facing heavy shorting activity. Despite the recent relief bounces, traders continue to bet against these assets. Santiment views this as a positive signal, suggesting that the liquidation of short positions could serve as a catalyst for a substantial price increase.

📈 Cardano and XRP are a couple of the most notable altcoins that are seeing heavy trader shorting following relief bounces. This is a good sign for patient bulls, as liquidates shorts can effectively act as 'rocket fuel' for continued price rises. pic.twitter.com/lHdMCLbngR

— Santiment (@santimentfeed) June 19, 2024

For Cardano, data from the accompanying chart indicates that the Binance Funding Rate stands at -0.013743, showing a predominance of short positions. Moreover, derivatives data sourced by analytics resource Coinglass shows that the the long/short ratio for ADA is 0.9755, confirming the increase in shorts.

Cardano Derivatives Data Coinglass
Cardano Derivatives Data | Coinglass

Interestingly, despite the surge in shorts, the Binance long/short ratio for accounts is significantly higher at 2.51. This divergence indicates that while traders have opened more short positions than long ones, Binance accounts that betting on a price upsurge are more than those betting on further dips.

For XRP, a similar pattern emerges. The Binance Funding Rate is -0.002935, suggesting more short positions. Data from Coinglass shows that the long/short ratio for XRP stands at 0.9623. Yet, the Binance long/short ratio for accounts is 2.98, reflecting a more optimistic stance from individual traders on Binance.

XRP Derivatives Data Coinglass
XRP Derivatives Data | Coinglass

Potential for Rapid Resurgence 

Santiment explained that when traders heavily short an asset, it creates a situation where any upward price movement can trigger short covering. This, in turn, can lead to a rapid and substantial price increase as shorts are forced to buy back the asset to cover their positions.

Further supporting the bullish perspective, a previous analysis from Santiment discussed ADA’s and XRP’s 30-day Market Value to Realized Value (MVRV) ratios. This metric compares the market value of an asset to its realized value. Lower MVRV ratios indicate that the asset is undervalued, which often precedes a price rebound.

Santiment revealed that for XRP, the 30-day MVRV is at -3.5%, classified as mildly bullish. Meanwhile, Cardano’s 30-day MVRV is even lower at -12.6%, categorized as very bullish. These figures suggest that both cryptocurrencies have significant upside potential in the short term, as undervalued assets typically attract buying interest.

The recent price movements further show the potential for a recovery. XRP has seen a modest gain of 0.42% over the past 24 hours, currently trading for $0.4932. Meanwhile, Cardano has increased by 0.34% during the same period, changing hands at $0.38. These small upticks could be the initial signs of a broader market resurgence.

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

-Advertisement-

AD

SNEKbot by DexHunter on CARDANO

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


Read Original Article on TheCryptoBasic

ORIGINAL SOURCE

https://thecryptobasic.com/2024/06/20/ca...

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 TheCryptoBasic

See more
Cardano DeFi Trading Volume Surpasses $22M: Will ADA Price React
TheCryptoBasic
Cardano DeFi Trading Volume Surpasses $22M: Will ADA Price React

last Thursday at 4:01 PM

·

31 views

Related News

See more

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

Featured News

See more



    DEFAULTENGLISH (EN)SPANISH (ES)RUSSIAN (RU)GERMAN (DE)ITALIAN (IT)POLISH (PL)HUNGARIAN (HU)JAPANESE (JA)THAI (TH)ARABIC (AR)VIETNAMESE (VI)PERSIAN (FA)GREEK (EL)INDONESIAN (ID)ROMANIAN (RO)KOREAN (KO)FRENCH (FR)CZECH (CS)PORTUGUESE (PT)TURKISH (TR)