Short Sellers Increase Bets Against Cardano and XRP Tokens
As an investor in the crypto space, it is important to note that short sellers have been ramping up their positions against both Cardano ($ADA) and the XRP Ledger’s native token ($XRP). This trend could potentially benefit long-term investors, as liquidated short positions have the potential to drive the prices of these cryptocurrencies higher.
Short Positions Dominance Since September 2023 for ADA and May 2024 for XRP
- Santiment, an on-chain analytics firm, observed that funding rates on Binance have been indicative of a prevalence of short positions over long positions since September 2023 for ADA and May 2024 for XRP.
Revival in the Crypto Market and Rise in Short Positions
- Investors are looking for a resurgence in the cryptocurrency market, where ADA and XRP have seen an increase in short positions following recent price upticks.
- Short selling involves traders borrowing an asset, selling it, and aiming to buy it back at a lower price to profit from the price differential.
Undervaluation of ADA and XRP Tokens
- Santiment’s analysis identified ADA and XRP as potentially undervalued assets earlier this week.
- The Market Value to Realized Value (MVRV) ratio highlighted ADA’s extreme undervaluation and “mild bullish conditions” for XRP.
- Historically, low MVRV ratios have often preceded price rebounds as undervalued assets attract renewed buying interest.
Analysts’ Optimistic Outlook on XRP and Cardano
Seeing Positive Correlation Between XRP Price Movements and Altcoin Dominance
- A pseudonymous analyst known as Cryptobilbuwoo shared a weekly chart-based analysis that suggests a correlation between XRP’s price movements and altcoin dominance (ALT.D).
Potential Price Surges for XRP and Cardano
- Based on technical analysis, XRP could see a surge to $2.71, indicating a forthcoming technical rebound.
- Analysts are indicating that the current price level of Cardano presents an excellent opportunity to dollar-cost average (DCA) into the cryptocurrency as its price retraces.
Hot Take: Stay Informed and Seize Opportunities
As a savvy crypto investor, it is crucial to keep an eye on the market dynamics surrounding assets like ADA and XRP. By staying informed and analyzing trends, you can position yourself to capitalize on potential price movements and investment opportunities. Stay vigilant and proactive in navigating the ever-evolving crypto landscape to make informed decisions that align with your investment goals.
By
By
By
By
By
By