Is Cardano the next crypto bomb waiting to explode? Amidst a renewed surge in altcoins, savvy traders have amassed huge fortunes by aggressively betting against undervalued altcoins. While everyone is chasing the next big thing, a key indicator suggests that certain altcoins are poised for explosive growth.
As per Santiment, a prominent on-chain analytics platform, ADA, Chiliz [CHZ], and Fantom [FTM] have been consistently shorted for over a month. This sustained bearish sentiment has ignited speculation of a potential short squeeze, propelling these tokens to significant price rallies.
When selecting altcoins, pay attention to those being bet against [shorted] by other crypto traders. When funding rates on large exchanges get heavily in the negative range, as we see with Chiliz, Fantom, and Cardano, there are increased chances of liquidations leading to pumps.
A short squeeze happens when the price of a heavily shorted asset rises sharply, forcing those sellers to close or buy back their positions to avoid substantial losses. This buying pressure can trigger an upward momentum, leading to a rapid price surge.
Santiment data indicates that funding rates on leading cryptocurrency exchanges for Cardano have been persistently negative. This metric reflects the cost of holding a long position, and negative funding rates suggest that there is a prevailing bearish sentiment among traders. However, such conditions can also create a powder keg for a potential short squeeze.
Cardano To Surpass Bitcoin
While past performance does not necessarily indicate future results, Santiment’s analysis uncovers the hidden signal, guiding users to score massive profits. However, it’s essential to conduct thorough research and consider multiple factors before making any investment decisions. The cryptocurrency market is highly volatile, and investors should be prepared for both upside and downside risks.
In a related development, Cardano founder Charles Hoskinson predicted ADA’s rise to the top of the cryptocurrency world, doubling down on Cardano’s mission and competitive edge to surpass those of Bitcoin.
“If we can do what I’m saying, there’s no way to beat Cardano because there’s nothing that can compete with it because, at the end of the day, it has lived up to what Satoshi started,” Hoskinson stated.