Santiment Unveils the Potential for Substantial Price Increases in These 2 Altcoins

Altcoins with Potential for Price Growth

In recent days, while Bitcoin has struggled, many altcoins have experienced positive price movements. One standout performer is Ethereum, which has seen a significant 13% increase in the past week. Blockchain analytics firm Santiment has identified two altcoins, Axie Infinity (AXS) and Bitcoin Cash (BCH), that may see price growth in the near future.

Short Positions and Price Movement

Santiment reports that AXS and BCH currently have a higher ratio of short positions compared to long positions. Traders are betting that the prices of these cryptocurrencies will drop. However, Santiment notes that if there are minor signs of a market bounce, short liquidations could occur. This could lead to rapid price surges for AXS and BCH as traders who have taken shorts are forced to buy back the assets.

The Influence of Market Dynamics

This projection highlights the complexity of market dynamics and how various factors, including trader sentiment and emotion, can influence the prices of crypto assets. It demonstrates that even seemingly negative indicators like short positions can potentially trigger upward price movement.

Bitcoin Cash Performance

Bitcoin Cash has had a positive performance over the past week, with an 8.5% increase in price. However, its value has declined by 4.6% since the beginning of the year. Currently valued at around $256, Bitcoin Cash is one of the top 30 largest assets in the cryptocurrency sector, with a market capitalization exceeding $5 billion.

Hot Take: Short Liquidations as Rocket Fuel for Altcoin Prices

Santiment’s analysis suggests that short liquidations resulting from market bounces could act as “rocket fuel” for altcoin prices like Axie Infinity and Bitcoin Cash. While traders are currently betting on these coins to drop in value, the forced buying that occurs during short liquidations could lead to significant upward price movement. This projection underscores the dynamic nature of cryptocurrency markets and how unexpected factors can impact prices.