Short traders target XRP and Cardano amid post-relief bounces

Investors have been anticipating a rebound in the price actions of cryptocurrencies. Therefore, Ripple and Cardano have become the most appealing altcoins.

The primary reason behind this is heavy trader shorting followed by a brief bounce. Santiment has also shared data suggesting that the finding rates for XRP and ADA on Binance have entered positive territory several times.

This indicates a dominating shorting versus a longing ratio since Sep 2023 for the former and May 2024 for the latter. These upticks have also led traders to think that a downtrend is impending. The trend has prompted many to short these two cryptos.

Santiment believes the massive shorting activity can also indicate a positive signal for patient bull traders. The on-chain analytic platform figured that Cardano is showing undervaluation with an -12.6% MVRV.

The metric stands at -3.5% for XRP, suggesting mild bullish conditions. For Cardano, the analysis hints at very bullish prospects for price recovery. Based on historical data, it can be established that such oversold scenarios trigger a rebound since the assets attract buying interest.

Between the two, Cardano seems to be setting itself for a massive benchmark. Its Chang hard fork is expected to set the stage for Voltaire making Cardano’s shift from a blockchain dominated by IOG to a community-driven, decentralized ecosystem.

Charles Hoskinson, the IOG Founder, also commented on the situation. Hoskinson believes that June will be the month when the Cardano node will hit 9.0. It means that the Chang hard fork is set and awaiting 70% of the SPOs for node installation. After that, a hard fork can take place to push Cardano into the Voltaire Age.

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On the other hand, Ripple has only noted small spikes during a market downturn. Its latest hike in OI suggests that traders are opening positions in anticipation of a rise in XRP’s prices. The investors are closely tracking the legal battle between the SEC and Ripple, which can be a defining point in XRP’s legacy.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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