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This Could Be "Rocket Fuel" For XRP and Cardano (ADA)

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Wed, 19/06/2024 - 19:44
This Could Be "Rocket Fuel" For XRP and Cardano (ADA)
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According to cryptocurrency analytics platform Santiment, XRP, and Cardano (ADA) are among the most heavily-shorted cryptocurrencies following their recent relief bounces.   

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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. 

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Meanwhile, 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.  

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So 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. 

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