Cryptocurrency analysis company Santiment, in a recent report, found that large amounts of short positions were taken in some altcoins.
According to analysts, short positions are being opened heavily by traders in Cardano (ADA) and Ripple (XRP) altcoins, following the small bounce movements they experienced.
Santiment argued that this is a good sign for patient bulls who are taking sides in the altcoin in question, and that if these short traders liquidate, it will provide “fuel” for a steady price rise.
The cryptocurrency market experienced a major decline led by Bitcoin, and the BTC price fell below $ 65,000 after a 1-month break. At the time of this writing, Bitcoin is trading at $64,793 and has lost approximately 5% of its value in the last week.
On the other hand, Ethereum has partially separated from the rest of the market. The reason for this separation in ETH was that the SEC announced that it had ended its investigation into Ethereum a while ago, and thus the last threats of accusations that ETH was a security were eliminated.
*This is not investment advice.
