Santiment Identifies Promising Outlook for Cardano ADA and XRP Amidst Intensified Shorting Trends

Santiment has brought attention to the high number of short positions in Cardano (ADA) and XRP, hinting at a possible bullish future for both cryptocurrencies.
Data from derivatives shows an increase in short positions, but ratios from Binance accounts show a more optimistic outlook.
With low MVRV ratios and recent price movements, it appears that Cardano and XRP could be undervalued.
Santiment, a top cryptocurrency analysis platform, recently highlighted the prevalence of short positions in Cardano (ADA) and XRP, suggesting that this could potentially indicate a positive trajectory for these digital assets.
Despite suffering losses in the recent market dip, these popular altcoins might be on the cusp of a bullish reversal, as indicated by insights from Santiment.
Cardano and XRP are currently seeing a surge in short positions, according to a recent Santiment post on X (formerly Twitter), even amidst some relief bounces in the market.
Interestingly, Santiment views this trend as a promising sign, proposing that the closure of these short positions could trigger a significant price upturn soon.
For Cardano, data from Santiment shows that the Binance Funding Rate is currently at -0.013743, indicating a dominance of short positions. Additionally, information from Coinglass confirms the rise in shorts, with the long/short ratio for ADA at 0.9755.
Despite the increase in short positions, the Binance long/short ratio for accounts is significantly higher at 2.51. This disparity suggests that while more short positions have been opened, more Binance accounts are betting on a price increase rather than a decline.
Santiment’s analysis of the heavy shorting activity surrounding Cardano and XRP, along with insights from derivatives data and MVRV ratios, implies that these altcoins could be gearing up for a bullish turnaround. The possibility of short covering and the undervaluation of these assets may lead to a swift price recovery in the near future.