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Santiment Reveals Why These 2 Altcoins Could Witness Significant Price Bumps

Press Releases Crypto News Bitcoinist Santiment Reveals Why These 2 Altcoins Could Witness Significant Price Bumps

Most altcoins have enjoyed a positive run in the past few days, while the world’s largest cryptocurrency, Bitcoin, has somewhat struggled following the approval of spot Bitcoin ETF trading in the US. Specifically, Ethereum has been the cream of the crop, with a substantial 13% price surge in the past week.

Blockchain analytics firm Santiment has offered on-chain insights into two altcoins that could experience price growth in the near future.

How Short Positions Can Trigger Upward Price Movement For These Altcoins

In a recent article on the X platform, Santiment revealed Axie Infinity (AXS) and Bitcoin Cash (BCH) as two altcoins that now have a larger ratio of shorts than longs. According to the on-chain analytics platform, the two cryptocurrencies are part of a small group of cryptocurrency assets on which traders are placing bets that their prices will drop.

Santiment stated in its post that investors seem to have faith in an imminent price surge for most cryptocurrencies, except for AXS and BCH. As a result, most traders are taking more short positions on these coins, expecting their values to drop over the coming days.

Chart showing the funding rates of AXS and BCH on Binance | Source: Santiment/X

However, the analytics platform acknowledged that minor signs of a market bounce could lead to short liquidations and, ultimately, rapid price surges for the Axie Infinity and Bitcoin Cash tokens. For context, short liquidations occur when traders who have taken shorts are unable to cover the cost of their positions as the asset’s value climbs.

According to Santiment’s report, short liquidations could act as “rocket fuel,” leading to further price increases for the altcoins. In this scenario, the “rocket fuel” term comes from the forced buying of assets by short traders – usually in response to a market bounce, leading to significant upward

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Author: Opeyemi Sule

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