Cryptocurrency analytics firm Santiment says three altcoins are now worth watching as a historically bullish indicator begins to flash.
Santiment is informing its 188,000 followers on social media platform X that lending platform Aave, metaverse project Decentraland (MANA), and indexing protocol The Graph (GRT) are experiencing significant short ratios on Binance, the world’s largest cryptocurrency exchange.
An imbalance among short sellers can often lead to a squeeze of short positions or a rapid and volatile rebound to the upside that liquidates short positions in a cascading manner.
Said Santiment,
“Altcoins to watch as cryptocurrencies continue to enjoy their strong rally include Decentraland, The Graph, and Aave. Each of these top 100 market caps have significant short ratios on Binance, implying that liquidations would lead to sharp price gains.”
However, Santiment also reports that whale transactions have dropped significantly since the middle of last month, indicating that the bigger players are taking their time before making their next move.
“Cryptocurrency whale transactions have seen a notable decline since mid-August
Bitcoin: Transfers over $100,000 down -33.6% since March/April peak
Ethereum: -72.5% drop in transfers over $100,000 since March/April peak
This is not necessarily a bearish signal. Whales can be equally active during a bull market or a bear market. But it does indicate that major players continue to take their time waiting to make their next moves in times of extreme greed or extreme fear.
The crowd has been very responsive to medium-sized swings since BTC’s all-time high 6 months ago. Based on sentiment patterns, a return to $70,000 would likely be accompanied by a large fear of missing out (FOMO), and $45,000 would likely bring a large fear of missing out.
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Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their own due diligence before making any high-risk investments in Bitcoin, cryptocurrencies or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Image generated: Midjourney
