Bullish Signal for XRP and These 7 Altcoins: Shorts Intensify!

The cryptocurrency market has been experiencing significant volatility lately. Following the decline in Bitcoin, investors began to look for safer havens. This situation also negatively affects the popularity of chest coins, which moved the markets for a while. Particularly heavy short-term bets on Dogecoin (DOGE) raise questions about the future of the branch. Additionally, there is short selling pressure in XRP and Cardano after the rise. Here are the details…

Santiment: Bullish signal for XRP, Cardano and these cryptos

According to the findings of the analytics company Santiment, there is a heavy short-term selling pressure after the rise in valuable altcoins such as XRP and Cardano. This can actually be considered a positive signal for the bulls. Because short positions that are liquidated can act as “rocket fuel” that will push prices up. However, things are going a little differently on the Dogecoin front.

According to Santiment’s analysis, the lower the last 30-day market value/realized value ratio (MVRV), the more likely it is to see a short-term bounce. While this rate gives a slightly bullish signal with values ​​such as -4% for Bitcoin, -4.3% for Ethereum, -3.5% for XRP, it gives a very strong bullish sign for Dogecoin with -16.7%. So, although DOGE technically has the potential to jump, the movements in the market point to a different direction. It is worth noting that cryptos such as Tocoin and Ethereum are also on Santiment’s list.

What’s next for DOGE?

Coinalyze data reveals that DOGE’s funding rates have turned negative since Tuesday, reaching -0.0027% on Thursday, marking a decline not seen since October 2023. Funding rates are periodic payments made by investors based on the price difference between the forward and spot markets. Although these rates are not very high, it is possible to say that there is a downward trend in the market when evaluated together with the fact that they always show a downward trend and the decline in DOGE prices. DOGE lost 12% value last week, erasing all the gains it had made since March.

In the Meme coin branch, as investors turned to less risky assets, the value of the tokens lost up to 40% in a week. Investment platform Stocklytics analyst Neil Roarty said in a statement: “When the Bitcoin price falls, chest coins often not only follow this decline, but also lose a larger portion of their value. In this case, the summer dream of a chest coin may need to be postponed.” said.

DOGE futures had one of their worst days

On the other hand, DOGE futures have had their worst day since May 2021. The liquidation of $60 million worth of long positions during this period was recorded as an unusual situation compared to Bitcoin futures processes. These declines coincide with Bitcoin losing value in recent weeks due to massive investor sell-offs of $2 billion, net outflows from US-listed exchange-traded funds (ETFs) and the strengthening of the dollar.

As a result, the cryptocurrency market has entered a period full of uncertainties. With the impact of the decline in Bitcoin, investors are turning to safer havens. This situation negatively affects the popularity of chest coins, which mobilize the middle markets. Heavier short-term bets on Dogecoin raise questions about the future of the branch. It is necessary to closely follow how the market will shape itself in the coming days and how Dogecoin will break this downward trend.