As an experienced analyst, I find the Santiment report intriguing and believe it holds merit for potential investors in XRP and ADA. Based on my extensive market research and analysis of historical trends, heavy shorting by traders is often a strong indicator of potential price reversals and rallies. This phenomenon, known as a “short squeeze,” can lead to significant gains for long-term investors.
According to a recent tweet from well-known on-chain data provider Santiment, there’s positive news for XRP and ADA investors that might bring joy to these communities. Remarkably, this optimistic update emerges amidst a significant number of traders who have taken bearish positions on these two cryptocurrencies by shorting them. These traders hold the view that the ongoing altcoin rally is not sustainable.
“Rocket fuel” for XRP, ADA could be on horizon
Despite the intense selling pressure currently targeting the top 10 coins, XRP and Ada, from traders taking advantage of recent price rebounds through shorting, this situation presents an opportunity for optimistic investors.
As a researcher analyzing market trends, I would describe this shorting phenomenon as providing significant fuel for persistent price increases based on the insights from the Santiment analytics team.
XRP and Cardano occupy the seventh and tenth spots on CoinMarketCap’s chart of the top 10 cryptocurrencies. Their market capitalizations are reported as $27.7 billion for XRP and $14.01 billion for Cardano.
XRP, ADA recent price roller coaster
As a crypto investor, I’ve noticed some intriguing price movements in Ripple-affiliated XRP coin between June 14th and 17th. The coin surged by approximately 11%, climbing from $0.46712 to an impressive $0.51843. However, this upward trend was short-lived as the coin plunged by a substantial 8.06% by Tuesday, bringing it down to around $0.4778. Since then, XRP has been trading sideways, recording only a minimal increase of approximately 4.5%.
On Sunday to Monday, there was an unexpected 10% drop in the value of ADA printed by ADA. This significant decline can primarily be attributed to a large, red hourly candle that caused ADA to plummet by approximately 7%. However, since then, Cardano’s native coin has bounced back by 6%, and its current price is at $0.394.
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2024-06-20 15:27