Which Altcoins Could Skyrocket Next? Analytics Firm Points To These
13 Septembre 2024 - 2:00AM
NEWSBTC
The on-chain analytics firm Santiment has pointed out how these
three altcoins may be more likely to see price jumps in the coming
future. These Altcoins Are Being Heavily Shorted On Binance Right
Now In a new post on X, Santiment has discussed about some altcoins
that could be worth keeping an eye on because of a trend forming in
their Binance Funding Rate. The Funding Rate here refers to an
indicator that tracks the periodic amount of fees that traders on a
given derivatives exchange (in this case, Binance) are paying each
other right now. Related Reading: Dogecoin Vs Shiba Inu Vs Pepe:
How Do The Top Memecoins Compare In Investor Profits? When the
value of this metric is positive, it means the long investors are
paying a fee to the short holders in order to keep their positions.
Such a trend suggests the majority of the derivatives users share a
bullish sentiment. On the other hand, the indicator being negative
implies the shorts are outweighing the longs, so a bearish
mentality could be assumed to be the dominant one in the sector.
Now, here is the chart shared by the analytics firm that shows the
trend in the Binance Funding Rate for three altcoins, Aave (AAVE),
The Graph (GRT), and Decentraland (MANA), over the past week: As is
visible in the above graph, the Binance Funding Rate has recently
switched from green to red for all three of these altcoins. This
would suggest that the investors have opened a large amount of
short positions on the exchange related to these assets, thus
shifting the balance. Interestingly, this heavy shorting from the
investors has come as the cryptocurrency market as a whole has been
rebounding, led by Bitcoin’s recovery back above $58,000. It would
appear that derivatives users don’t expect AAVE, GRT, and MANA to
continue the bullish wave. This pessimism around the altcoins,
however, can actually play into the benefit of their prices. This
is because mass liquidation events are more likely to affect the
side of the market with the most positions. At present, the
dominant side is the bearish one, so mass short liquidations could
likely occur in the coming days. Whenever a large amount of
liquidations take place at once (an event that’s popularly known as
a squeeze), the price can see a burst of volatility arising out of
all this fuel. As such, Santiment believes that should these shorts
get caught in a liquidation event, the altcoins could see big price
jumps. Related Reading: Bitcoin Recovery: Has BTC Prevented A Fall
To $41,000 With This Surge? It only remains to be seen, though,
whether Aave and others would show price surges from here and
punish these investors betting on a bearish outcome. Aave Price
Aave has been enjoying bullish momentum during the last few days as
its price has risen to $147 after witnessing a surge of over 11% in
the last seven days. Featured image from Shutterstock.com,
Santiment.net, chart from TradingView.com
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