Cardano And XRP Shorting Activity May Act As ‘Rocket Fuel’ For Rally; Sentiment

On-chain analytics platform Santiment revealed a potential impact factor Cardano (ADA) and XRP to be happy to keep going up. Both tokens are recording relief pumps following the recent decline in the crypto market, but market traders believe that this development is far from over. bullish reversal.

Heavy Trader Shorting can lead to an increase in the price of Cardano and XRP

Santiment was searched for on X (formerly Twitter) posted that the heavy trader disconnect that Cardano and XRP are currently experiencing could be “rocket fuel” for continued price increases for these crypto tokens. Sentiment he also revealed that Cardano and XRP were among the most notable altcoins that were shorted following their support burst.

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Interestingly, they call this a “good sign” for patient bulls, as they believe it the elimination of these short positions it could effectively be the impetus that these crypto tokens need to rise higher. Cardano and XRP being named among the most shorted altcoins is not surprising, considering that they are the most underperforming coins this year among the top 50 crypto tokens by market cap.

Cardano and XRP have generally failed to enjoy significant relief pumps even as Bitcoin (BTC) and the broader crypto market have enjoyed massive rallies. However, this time may be different, as Cardano and XRP have enjoyed modesty price return while others other altcoins delay.

The data from Coinglass shows that Sentiment’s theory is already playing out, seeing how the bears of Cardano and XRP have lost a lot 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 were closed while XRP longs were unaffected.

A Big Move May Be Near for XRP

Crypto analyst Egrag Crypto recently predicted that XRP could enjoy a price pump of almost 1,700% since July. You mentioned the XRP quarter hammer formation between April and June 2016 and July and September 2017 before the crypto token enjoyed a big pump. The crypto analyst said that XRP can make this bullish pattern again but it needs to close the 3-month candle above the range between $0.55 and $0.58 in 10 days.

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Egra he went on to say that if the hammer structure is similar to the one in 2016, XRP could start a 1,700% price rally that is projected in July, eventually sending the crypto token to $8. However, if the hammer structure is similar to this in 2017, Egrag said that XRP owners may have to wait another six months before the “prominent” pump of about 5,500%, posting. XRP price goes to $27.

The featured image was created with Dall.E, a chart from Tradingview.com