ADA, XMR and some other altcoins are flashing bullish signals
According to Santiment data, ADA, XMR, and several other altcoins are showing signs of bullishness as the crypto market turns bullish again. Bitcoin is currently trading at $42,451, up 2.9% in the last 24 hours.
???? We are seeing a notable increase in leveraged short positions across multiple areas #crypto fortune currently. The average foreign exchange financing rates are negative for #altcoins such as $ANCR, $VIEW, $SIA, $XMR, $AXS, $DGB, & $BNB. If these shorts are liquidated, it can result in large price spikes. pic.twitter.com/ojKvOi71wc
— Santiment (@santimentfeed) January 18, 2022
“Currently we are witnesses quantitatively position short Use different cryptocurrencies noticeable increase. financing rate medium on the current exchange negative for altcoins like ANKR, XEM, SIA, XMR, AXS, DGB and BNB. If those position so short liquidated, could send prices skyrocketing.”
Other tokens in the top 20 are currently up 1% to 6% over the past 24 hours, according to CoinMarketCap data.
On-chain analytics firm Santiment reports that leveraged short positions for various cryptocurrencies have increased significantly recently. They note that altcoins are increasingly showing signs of over-shorting and negative funding rates, suggesting a short liquidation that could lead to a price spike.
This is possible given that when BTC starts propelling the market higher, altcoins that liquidate significantly in the near term tend to use those liquidations as bullish catalysts.
ADA peaked at $1.64 on Jan. 18 amid optimism about the Cardano blockchain. The price was rejected and then fell, fueled by a sell-off in the market.
However, ADA fundamentals remain quite strong as Santiment reports that the Cardano blockchain is actively developing and increasing daily active addresses (DAA).
The source: mood
DAA is a useful metric for tracking network activity over time. In general, a growing DAA signals greater blockchain usage, while a declining indicator indicates less demand for the network. This metric tends to correlate with price activity. As a result, the DAA can often act as a precursor to price action.
Positive developments on the Cardano blockchain
IOHK has released a brief summary of news and announcements from projects building on Cardano over the past 10 days. IOHK tweets:
“Every app in the thriving Cardano ecosystem is busy. Here are some of the news and announcements from projects built on Cardano that we’ve spotted over the past 10 days.”
First, SundaeSwap announced the launch on January 20th as QuickMint (an NFT platform built on top of Cardano) and shared the news about the expected testnet launch on January 19th. Astarter also announced the open beta event and some other plans.
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