On-chain analytics platform Santiment has outlined a factor that could contribute to this Cardano (ADA) and XRP enjoy further movements upwards. Both tokens registered relief pumps after the recent crypto market decline, but market traders believe that this development is far from stable bullish reversal.
Shorting from heavy traders could lead to price increases for Cardano and XRP
Santiment claimed in an X (formerly Twitter) after that the shorting from heavy traders currently seeing Cardano and XRP could be the “rocket fuel” for continued price increases for these crypto tokens. Santiment had also revealed that Cardano and XRP were among the most notable altcoins to be heavily shorted after their relief bounces.
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Interestingly enough, they called this a ‘good sign’ for the patient bulls because that’s what they believe liquidation of these short positions could in fact be the momentum these crypto tokens need to move higher. That Cardano and
Cardano and This time, however, could be different as Cardano and XRP have posted modest gains price recovery while some other altcoins delay.
Facts from Coinglass shows that Santiment’s theory could already be in play as the Cardano and XRP bears have suffered significant losses in the past 24 hours. During this period, over $50,000 of Cardano short positions were liquidated, while not a single cent of Cardano long positions were liquidated. Similarly, more than $30,000 worth of short positions in XRP were liquidated, while long positions in XRP were left unaffected.
A big move may be just around the corner for XRP
Crypto analyst Egrag Crypto recently predicted that XRP could enjoy a price pump of around 1,700% from July. He referred to XRP’s quarterly earnings report hammering between April and June 2016 and July and September 2017 before the crypto token got a big pump. The crypto analyst stated that XRP could form this bullish pattern again, but needed to close the 3-month candle above the range between $0.55 and $0.58 in 10 days.
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Egg further claimed that if the hammer formation is similar to that seen in 2016, XRP could begin its expected 1,700% price rally in July, eventually pushing the crypto token to $8. However, if the hammer formation is similar to that in 2017, Egrag said XRP holders may have to wait another six months for the “epic” pump of around 5,500% to occur. XRP price to $27.
Featured image created with Dall.E, chart from Tradingview.com
