On-chain analysis platform Santiment We have outlined factors that may contribute. Cardano (ADA) and XRP It is enjoying further upward momentum. Both tokens have recorded relief following the recent downtrend in the cryptocurrency market, but market traders believe that these developments are far from reality. bullish reversal.
Short selling by large traders could lead to higher prices for Cardano and XRP
Complaints shown on X (formerly Twitter) post The large-scale trader short selling that Cardano and XRP are currently seeing could be “rocket fuel” for the continued price rise of these cryptocurrency tokens. st tly It also revealed that Cardano and XRP were among the most notable altcoins that were heavily shorted following the rescue bounce.
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Interestingly, they called this a “good omen” for patient bulls. Liquidation of these sell positions This could be the momentum these cryptocurrency tokens need to rise higher. It is no surprise that Cardano and XRP are ranked among the most shorted altcoins. Considering that it is the worst-performing coin this year among the top 50 cryptocurrency tokens by market capitalization.
Cardano and However, this time may be different as both Cardano and XRP have enjoyed moderate prices. price recovery while some other altcoins delay.
data A report from Coinglass shows that Santiment’s theory may already be in effect, seeing how Cardano and XRP bears suffered significant losses over the past 24 hours. During this period, over $50,000 in Cardano short positions was liquidated, but not a single cent was liquidated in Cardano long positions. Likewise, over $30,000 in XRP short positions were liquidated, but XRP long positions were unaffected.
A major move for XRP could be on the horizon.
Cryptocurrency analyst Egrag Crypto Recently predicted XRP could enjoy a price rise of approximately 1,700% since July. He mentioned XRP’s quarterly performance. hammer formation This was between April and June 2016 and July and September 2017 before the big boom in cryptocurrency tokens. The cryptocurrency analyst said that XRP could form this bullish pattern again, but would need to close a three-month candle above the $0.55-$0.58 range within 10 days.
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Eggg They also claimed that if the hammer formation is similar to the formation in 2016, XRP could begin an expected 1,700% price rise in July that could eventually send the cryptocurrency token to $8. However, if the hammer formation is similar to the one in 2017, Egrag noted that XRP holders may have to wait another six months for an “epic” pump of around 5,500%. The price of XRP is $27.
Featured image created with Dall.E, chart from Tradingview.com