Cardano And XRP Shorting Activity Could Act As ‘Rocket Fuel’ For A Rally; Santiment
21 June 2024 - 3:30AM
NEWSBTC
On-chain analytics platform Santiment has outlined a factor that
could contribute to Cardano (ADA) and XRP enjoying further moves to
the upside. Both tokens recorded relief pumps following the recent
decline in the crypto market, but market traders believe this
development is far from a bullish reversal. Heavy Trader
Shorting Could Lead To Price Rises For Cardano And XRP Santiment
claimed in an X (formerly Twitter) post that the heavy trader
shorting which Cardano and XRP are currently seeing could be the
“rocket fuel” for continued price rises for these crypto tokens.
Santiment had also revealed that Cardano and XRP were among the
most notable altcoins that are heavily shorted following their
relief bounces. Related Reading: Ethereum Price To Hit
$10,000, ‘Just The Way The Chips Have Fallen,’ Analyst Says
Interestingly, they called this a “good sign” for the patient
bulls, as they believe that liquidation of these short positions
could effectively be the momentum that these crypto tokens need to
rise higher. Cardano and XRP being named among the most shorted
altcoins isn’t surprising, considering that they are the most
underperforming coins this year among the top 50 crypto tokens by
market cap. Cardano and XRP have also usually failed to enjoy
significant relief pumps even when Bitcoin (BTC) and the broader
crypto market enjoy a massive rebound. However, this time could be
different, as Cardano and XRP have enjoyed a modest price recovery
while some other altcoins lag. Data from Coinglass shows that
Santiment’s theory could already be in play, seeing how the Cardano
and XRP bears have suffered significant losses in the last 24
hours. Over $50,000 in Cardano short positions have been liquidated
during this period, while not a single cent in Cardano long
positions have been liquidated. Similarly, over $30,000 in XRP
short positions have been liquidated while XRP longs were
unaffected. A Major Move Might Be On The Horizon For XRP
Crypto analyst Egrag Crypto recently predicted that XRP could enjoy
a price pump of around 1,700% starting in July. He alluded to XRP’s
quarterly hammer formation between April and June 2016 and July and
September 2017 before the crypto token enjoyed a major pump. The
crypto analyst stated that XRP could form this bullish pattern
again but needed to close the 3-month candle above the range
between $0.55 and $0.58 in 10 days. Related Reading: Dogecoin
Weighted Sentiment Drops To 2024 Lows, What Does This Mean For
Price? Egrag further claimed that if the hammer formation is
similar to the one in 2016, the XRP could begin the projected
1,700% price rally in July, eventually sending the crypto token to
$8. However, if the hammer formation is similar to the one in 2017,
Egrag mentioned that XRP holders might have to wait another six
months before the “epic” pump of around 5,500%, sending XRP’s price
to $27. Featured image created with Dall.E, chart from
Tradingview.com
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