According to cryptocurrency analysis platform Santiment, XRP and Cardano (ADA) are between the most shorted cryptocurrencies following their recent relief bounces.
According to cryptocurrency analysis platform Santiment, XRP and Cardano (ADA) are between the most shorted cryptocurrencies following their recent relief bounces.
The company has stated that this could be a good sign for bulls as liquidated shorts could act as “rocket fuel” for sustained price increases.
A short squeeze occurs when a large number of holders bet against a given cryptocurrency, causing a significant imbalance between supply and demand.
As reported by U.Today, the cryptocurrency XRP recently managed to decouple from Bitcoin, the leading cryptocurrency. On July 17, it gained up to 7% against the king of cryptocurrencies and at the same time surpassed the top 100.
Dan BurginMeanwhile, ADA is benefiting from the hype surrounding the upcoming release of the “Chang” hard fork that will usher in a new era with decentralized governance. As reported by U.TodayCardano founder Charles Hoskinson stated that this would be the biggest milestone in the history of the proof-of-stake network, as well as the cryptocurrency industry in general.
XRP and ADA are currently in eighth and eleventh place by market value after rising 3.7% and 4.7% in the last 24 hours, respectively.
Mushumir to the fullestSo far, the aforementioned cryptocurrencies have not experienced substantial volatility. Coinglass data shows that $1.02 million in XRP and $217,830 in ADA have been liquidated in one day. However, these liquidations could grow substantially if aggressive short selling continues. A rapid price increase caused by a short squeeze could trigger a cascade of liquidations.
