Two of the most well-known cryptocurrencies, XRP and ADA, have recently experienced a surprising development in the altcoin market. According to Santiment, a prominent crypto analytics provider, both tokens have become top choices for traders looking to short altcoins. This decrease in trader interest is seen as a sign of skepticism towards the crypto tokens. Santiment revealed this market trend on its official account.
Cardano and XRP are among the altcoins that have seen a significant increase in shorting by traders following relief bounces. This is a positive sign for patient investors, as the liquidation of shorts can effectively fuel further price increases. pic.twitter.com/lHdMCLbngR — Santiment (@santimentfeed) June 19, 2024
Santiment noted that this shift in trader behavior occurred after relief bounces. The data suggests that traders are expressing disbelief in the current altcoin bounce, leading them to short both XRP and ADA.
However, Santiment’s market analysis also highlights a positive aspect of this development. The analytics firm believes that this situation could be favorable for potential bulls. The liquidation of shorts may contribute to significant price surges and serve as a catalyst for further price increases.
Santiment further emphasizes that this gradual shift by traders can be likened to “rocket fuel.” This implies that both XRP and ADA may continue to experience spikes in value.
Tags: ADA, XRP