Altcoins
Cardano on the verge of explosion: an imminent short squeeze?
Is Cardano the next crypto bomb waiting to explode? Amid renewed interest in altcoins, savvy traders have amassed huge fortunes by aggressively betting against undervalued altcoins. While everyone is chasing the next big thing, one key indicator suggests that some altcoins are poised for explosive growth.
According to Santiment, a leading on-chain analytics platform, ADA, Chiliz [CHZ]and Fantom [FTM] have been constantly short circuited for over a month. This sustained bearish sentiment has sparked speculation of a potential short squeeze, propelling these tokens to significant price gains.
When selecting altcoins, be careful about which ones you bet against [shorted] by other crypto traders. When funding rates on major exchanges go deeply negative, as we see with Chiliz, Fantom, and Cardano, the risks of liquidations leading to pumps increase.
A short squeeze occurs when the price of a heavily shorted asset increases sharply, forcing sellers to close or buy back their positions to avoid substantial losses. This buying pressure can trigger upward momentum, leading to a rapid price increase.
Data from Santiment indicates that funding rates on major cryptocurrency exchanges for Cardano have been consistently negative. This metric reflects the cost of holding a long position, and negative funding rates suggest that there is a prevailing bearish sentiment among traders. However, such conditions can also create a powder keg for a potential short squeeze.
Cardano to Overtake Bitcoin
While past performance is not necessarily a guarantee of future results, Santiment’s analysis reveals the hidden signal, guiding users towards massive profits. However, it is essential to conduct thorough research and consider several factors before making any investment decision. The cryptocurrency market is highly volatile and investors should be prepared for both upside and downside risks.
In a related development, Cardan Founder Charles Hoskinson predicted ADA’s rise to the top of the cryptocurrency world, doubling down on Cardano’s mission and competitive advantage to surpass Bitcoin’s.
“If we can do what I say, there is no way we can beat Cardano because there is nothing that can compete with it because, ultimately, it has lived up to what Satoshi started,” Hoskinson said.