Despite their recent relief bounces, XRP and Cardano (ADA) are now among the most heavily-shorted cryptocurrencies, according to Santiment, a bitcoin analytics company.The company advises this could be a good sign for bulls since liquidated shorts could be “rocket fuel” for continuous price rises.
A short squeeze that is, a situation in which many holders are betting against a particular cryptocurrency may generate a notable mismatch between supply and demand, hence influencing very dramatic price rises.
Recently, XRP made news for separating from the most often used cryptocurrency, Bitcoin. XRP jumped by as much as 7% against Bitcoin on July 17 and topped all the top 100 cryptocurrencies overall. For XRP, this decoupling represents a momentous event highlighting its ability for autonomous price fluctuations inside the larger crypto market.
XRP Gains Market Value
Conversely, the forthcoming introduction of the “Chang” hard fork is driving increasing interest in ADA. For the Cardano network, this widely awaited update is supposed to start a new chapter of distributed governance.Founder of Cardano Charles Hoskinson has called this event the most important in the history of the proof-of-stake network and a turning point for the whole cryptocurrency sector.
Following advances of 3.7% and 4.7% over the past 24 hours, Ripple and ADA respectively rank eighth and eleven by market value. Notwithstanding these developments, neither of cryptocurrencies has yet shown significant volatility.
According to Coinglass data, one day liquidated Ripple valued $1.02 million and ADA valued $217,830. Should aggressive shorting continue, these liquidation numbers could rise noticeably. A short squeeze-induced quick price increase could set off a chain reaction of liquidations, hence raising prices even more.
Regarding XRP and ADA, the attitude of the present market is conflicting. Although strong short interest points to traders’ mistrust, for optimistic investors the possibility for a short squeeze offers a striking attraction. Should the expected short squeezes materialize, XRP and ADA may find notable near future upward impetus.
Particularly the effect of the “Chang” hard fork on Cardano’s pricing and governance structure as well as any more decoupling of XRP from Bitcoin, investors and market observers will be intently observing these developments. These two cryptocurrencies remain front and foremost in both innovation and speculation as the crypto industry develops.
