- Cardano (ADA) and XRP could experience further price increases influenced by on-chain factors.
- Recent trends highlight shorting activities by traders which may act as a catalyst for bullish moves.
- Market analysts from Santiment have identified these trends as potentially significant for future price dynamics.
Cardano and XRP Show Promising Signs Despite Market Fluctuations
Influence of Hefty Shorting on Cardano and XRP Prices
According to data published by Santiment, an influential on-chain analytics platform, the aggressive shorting of Cardano (ADA) and XRP could serve as a powerful driver for their price appreciation. The firm highlighted that even after the recent market downturn, these two cryptocurrencies are seeing significant short-selling, which traders believe is not indicative of renewed bullish momentum.
Potential Positive Outcomes from Short Liquidations
Notably, Santiment suggested that the liquidation of these substantial short positions might provide the necessary boost for ADA and XRP to ascend further in value. This speculation stands out, particularly since both tokens have struggled to achieve significant gains amidst broader market rebounds this year. Interestingly, both cryptocurrencies have already shown minor positive corrections while others lag behind.
Backing up this theory, data from Coinglass indicates considerable losses among Cardano and XRP short-sellers over the last day. Specifically, Cardano shorts saw over $50,000 in liquidations without any corresponding long liquidations. Similarly, XRP experienced over $30,000 in short liquidations, with long positions remaining intact.
XRP Anticipates a Major Price Surge
Further amplifying the positive outlook for XRP, renowned crypto analyst Egrag Crypto forecasts a significant price increase potentially starting in July. Egrag pointed to historical patterns, specifically the quarterly hammer formations seen between April and June of 2016, and again from July to September 2017. These formations preceded major price hikes for XRP, suggesting history might repeat itself.
Analyzing Historical Patterns for Future Predictions
Egrag Crypto’s analysis suggests that if XRP closes its three-month candle above the $0.55 to $0.58 range, a marked price increase, similar to past bullish patterns, could occur. In one scenario, aligning with 2016 trends, XRP could rally by approximately 1,700%, raising its value to about $8 by July. An alternative hypothesis, drawing parallels with 2017 trends, could see XRP rise by an astounding 5,500%, potentially driving its price to $27, albeit requiring a six-month wait.
Conclusion
In conclusion, both Cardano and XRP present potentially lucrative opportunities for investors, particularly if current shorting activities lead to large-scale liquidations that drive their prices up. Historical patterns and ongoing market dynamics suggest that these cryptocurrencies could be on the brink of significant price movements, providing a potentially profitable outlook for patient traders and investors.
