The recent relief pumps experienced by Cardano (ADA) and XRP in the crypto market have caught the attention of market traders. Despite this, there is skepticism surrounding whether these moves signify a bullish reversal. According to on-chain analytics platform Santiment, the heavy shorting of Cardano and XRP by traders could actually act as “rocket fuel” for further price increases. The fact that these two altcoins are among the most heavily shorted following their relief bounces is seen as a positive sign for patient bulls, as the liquidation of these short positions may provide the necessary momentum for them to rise higher.
Cardano and XRP being named as some of the most shorted altcoins is not surprising, considering their performance so far this year. Among the top 50 crypto tokens by market cap, these two coins have been the most underperforming. Even during periods when Bitcoin (BTC) and the broader crypto market have seen significant rebounds, Cardano and XRP have failed to enjoy similar relief pumps. However, the current situation seems to be different, with both coins experiencing a modest price recovery while other altcoins lag behind.
Signs of Progress
Data from Coinglass supports Santiment’s theory, indicating that the bears of Cardano and XRP have suffered losses in the last 24 hours. Over $50,000 in Cardano short positions have been liquidated during this period, while no long positions were affected. Similarly, over $30,000 in XRP short positions have been liquidated, with longs remaining stable. This could be an indication that the momentum is shifting in favor of these two altcoins.
Crypto analyst Egrag Crypto has made a bold prediction regarding XRP, suggesting that the coin could see a price pump of up to 1,700% starting in July. He referenced XRP’s quarterly hammer formation in the past, indicating that a similar bullish pattern could be forming again. Egrag highlighted the importance of XRP closing the 3-month candle above the range between $0.55 and $0.58 within the next 10 days to trigger this potential rally. If the scenario plays out similarly to previous patterns, XRP could reach $8 in the coming months.
However, Egrag also mentioned another possibility where XRP’s price rally could be even more substantial. If the hammer formation mirrors the one from 2017, XRP holders may have to wait a bit longer for a massive pump of around 5,500%, sending the coin’s price soaring to $27. This scenario would require patience and careful monitoring of XRP’s price movements in the coming months.
The current market environment for Cardano and XRP presents an interesting opportunity for traders and investors. The heavy shorting of these altcoins could potentially act as a catalyst for further price increases, as indicated by on-chain analytics and market trends. While there is always a level of uncertainty in the crypto market, the signs of progress shown by Cardano and XRP indicate that there may be more upside potential in store for these two coins. Investors should keep a close eye on developments and be prepared for various scenarios that could play out in the coming months.
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