With investors eagerly anticipating a much-needed rebound in the price actions of the crypto market, Cardano and Ripple’s XRP have emerged as two of the most prominent altcoins experiencing heavy trader shorting after a brief respite.According to the data shared by Santiment, the finding rates for both ADA and XRP on Binance have spiked into positive territory multiple times, indicating a dominant shorting vs. longing ratio since September 2023 for the former and May 2024 for the latter.
The recent upticks may have led traders to believe that a downtrend is likely, thereby prompting many to short the two altcoins. However, Santiment believes this heavy shorting activity could be a positive signal for “patient bulls.” 📈 Cardano and XRP are a couple of the most notable altcoins that are seeing heavy trader shorting following relief bounces. This is a good sign for patient bulls, as liquidates shorts can effectively act as ‘rocket fuel’ for continued price rises.that Cardano showed extreme undervaluation with an MVRV of -12.6%, while that of XRP stood at -3.5%. For ADA, this analysis indicated very bullish prospects for its price recovery.
The low MVRV ratio suggests that traders are currently holding assets at prices below their initial buying costs. Historically, this oversold scenario has been followed by a rebound as the asset attracts buying interest.Cardano, for one, appears to be gearing up for a major milestone that could serve as a catalyst for its token.
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