Santiment, an on-chain analytics platform, has highlighted a key factor that may contribute to the potential for Cardano (ADA) and XRP to experience further upward movement in the crypto market. Despite both tokens recently seeing relief pumps following a decline, market traders remain cautious, viewing these movements as merely temporary. In a post on X (formerly Twitter), Santiment suggested that the heavy shorting pressure on Cardano and XRP could act as “rocket fuel” propelling these cryptocurrencies to higher prices. This shorting pressure indicates market sentiment and could create the momentum needed for these tokens to rise.
Cardano and XRP have been identified as among the most heavily shorted altcoins, particularly after their recent relief bounces. This trend is significant, especially considering that both tokens have been underperforming compared to other cryptocurrencies in the top 50 by market capitalization this year. Historically, Cardano and XRP have struggled to capitalize on price surges in the broader crypto market. However, the current situation seems to present a different scenario, as both tokens have shown some resilience amid market volatility.
Recent data from Coinglass supports Santiment’s theory, showing that short positions in Cardano and XRP have experienced significant liquidations in the last 24 hours. Over $50,000 worth of Cardano short positions were closed during this period, while XRP saw over $30,000 in short positions liquidated. Interestingly, long positions in both tokens remained unaffected. This shift in market dynamics suggests that traders may be repositioning themselves, potentially setting the stage for a bullish trend.
Crypto analyst Egrag Crypto has offered an optimistic outlook for XRP, speculating that the token could see a substantial price increase of up to 1,700% starting in July. Drawing parallels to historical price patterns, Egrag highlighted XRP’s quarterly hammer formation in previous years and suggested that a similar pattern might emerge. The analyst emphasized the importance of closing the 3-month candle above a specific price range within a set timeframe to trigger this potential rally. If XRP follows a trajectory similar to previous patterns, it could reach new price milestones in the coming months, further fueling investor interest in the token.
Egrag’s projections paint a bullish picture for XRP, envisioning price targets of $8 and $27 based on different scenarios. Should XRP mirror the 2016 hammer formation, a price rally of 1,700% could lead to a price of $8. Alternatively, if the pattern resembles the 2017 formation, a more substantial pump of around 5,500% could propel XRP’s price to $27. These predictions highlight the potential for significant gains, but also underscore the volatility and uncertainty inherent in the crypto market.
The recent developments in the Cardano (ADA) and XRP markets reflect a shift in sentiment that could pave the way for a bullish trend. While shorting pressure has been a dominant force, the liquidation of short positions signals a potential change in market dynamics. With optimistic forecasts for XRP’s price trajectory, investors and traders alike will be closely monitoring these cryptocurrencies for signs of further growth and potential opportunities in the ever-evolving crypto landscape.
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