Cryptocurrency insights firm Santiment says there are now three altcoins worth watching as historically bullish indicators start to flicker.
Santiment informed his 188,000 followers on social media platform X that lending platform Aave, metaverse project Decentraland (MANA), and indexing protocol The Graph (GRT) were seeing significant shorting ratios on the world’s largest cryptocurrency exchange, Binance.
Short-seller imbalances often result in short squeezes or sharp, volatile bounces that result in a cascade of liquidations of short positions.
Santiment says:
“Altcoins to watch as cryptos continue to enjoy a strong rally include Decentraland, The Graph, and Aave. All of these top 100 market caps have significant short ratios on Binance, suggesting liquidations could lead to significant price action.”
However, Santiment reported a significant drop in whale trading since mid-month, suggesting the big players are buying time before making their next move.
“Cryptocurrency whale trading has decreased significantly since mid-August.
Bitcoin: Transfers over $100K down 33.6% since March/April peak
Ethereum: $100K+ transfers down 72.5% since March/April peak
This is not necessarily a bearish signal. Whales can be equally active during bull and bear markets. However, it does indicate that major key stakeholders are buying time while waiting for the next move during times of extreme crowd greed or extreme fear.
The crowd has been very sensitive to medium-sized moves since the BTC all-time high 6 months ago. The sentiment pattern suggests that a return to $70k would likely trigger fear of missing out (FOMO), while $45k would likely lead to major FUD.”
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Disclaimer: The opinions expressed on The Daily Hodl are not investment advice. Investors should do their own due diligence before making any high-risk investment in Bitcoin, cryptocurrencies or digital assets. Your transfers and transactions are your responsibility and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets and The Daily Hodl is not an investment advisor. The Daily Hodl participates in affiliate marketing.
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