According to cryptocurrency analytics platform Santiment, XRP, and Cardano (ADA) are among the most heavily-shorted cryptocurrencies following their recent relief bounces.
The firm has stated that this could potentially be a good sign for the bulls since liquidated shorts could act as "rocket fuel" for sustained price increases.
A "short squeeze" occurs when a large number of holders are betting against a certain cryptocurrency, causing a significant imbalance between supply and demand.
As reported by U.Today, the XRP cryptocurrency recently managed to decouple from Bitcoin, the leading cryptocurrency. On July 17, it gained as much as 7% against the crypto king while also outperforming the entire top 100.
Dan BurginMeanwhile, ADA is benefiting from the hype surrounding the upcoming launch of the "Chang" hard fork that will start a new era with decentralized governance. As reported by U.Today, Cardano founder Charles Hoskinson stated that this would be the biggest milestone in the history of the proof-of-stake network as well as the broader cryptocurrency industry.
XRP and ADA are currently in 8th and 11th places by market value after surging 3.7% and 4.7% over the past 24 hours, respectively.
Mushumir ButtSo far, the aforementioned cryptocurrencies have not experienced substantial volatility. Coinglass data shows that $1.02 million worth of XRP and $217,830 worth of ADA have been liquidated in one day. However, these liquidations could grow substantially if aggressive shorting continues. A rapid rise in price caused by a short squeeze could cause a cascade of liquidations.
Arman Shirinyan
Vladislav Sopov
Dan Burgin
U.Today Editorial Team