Shiba

Cardano

Flash

Shiba Inu

<ul>
 <li>The recent daily surge in the price of XRP and ADA has been triggered by an increasing wave of short positions.&nbsp;</li>
</ul>
<ul>
 <li>While this is said to be a good suggestion for growing market confidence, analysts believe that it could also lead to potential market volatility.</li>
</ul>
The crypto market recorded a sudden rebound with <a href="https://www.crypto-news-flash.com/what-is-cardano-ada-the-best-3rd-generation-blockchain/" target="_blank" rel="noopener noreferrer nofollow">Cardano (ADA)</a> surging by more than 4% before flipping back into the “red zone” to trade at $0.39.&nbsp;

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 <div class="mcw-chart mcw-chart-light" data-font="inherit" data-coin="cardano" data-symbol="ADA" data-currency="USD" data-rate="1.000268" data-type="chart" data-view="day" data-theme="light" data-smooth="true" data-areacolor="" data-bgcolor=""></div>
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Similarly, XRP jumped by 3% in just 24 hours to trade at $0.49.&nbsp;

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 <div class="mcw-chart mcw-chart-light" data-font="inherit" data-coin="xrp" data-symbol="XRP" data-currency="USD" data-rate="1.000268" data-type="chart" data-view="day" data-theme="light" data-smooth="true" data-areacolor="" data-bgcolor=""></div>
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Investigating this unexpected run, crypto market intelligence platform Santiment <a href="https://coingape.com/cardano-ada-and-xrp-rebound-fueling-new-wave-of-short-positions/" target="_blank" rel="noopener noreferrer nofollow">disclosed</a> that the renewed rally was triggered by a new wave of opened short positions. To them, traders did not find enough confidence in the relief rally sparked by the recent decision by the US Securities and Exchange Commission (SEC) to withdraw the security probe into Ethereum. According to data, this is the most prominent shorting vs longing ratio for ADA in the last nine months with XRP’s bearish to bullish bet ratio recording its highest figure in over a month.&nbsp;
<iframe title="Surge in Short Positions Triggered by Cardano (ADA) and XRP Rebound" width="788" height="443" src="https://www.youtube.com/embed/cU3ox8cQSgw?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
Per our data, the heavy shorting resulted in a downward pressure, pushing both ADA and XRP into the “red zone” on Wednesday night. According to Santiment, this behavior is rather a good sign for bullish traders. It is important to note that this could also lead to a significant liquidation and a short squeeze once the market moves against these positions. On the other side, the decision by short sellers to exit their position with buy orders could also push the price up.&nbsp;
<blockquote>
 Cardano and XRP are a couple of the most notable altcoins that are seeing heavy traders shorting following relief bounces. This is a good sign for patient bulls, as liquidate shorts can effectively act as ‘rocket fuel’ for continued price rises.
</blockquote>
<h3 id="cryptoquant-s-report-on-xrp-and-ada">CryptoQuant’s report on XRP and ADA</h3>
Another report by CryptoQuant also highlights that Open Interest in XRP has been on an impressive surge, suggesting growing market confidence and heightened trading activity around the asset. Regardless of this suggesting a bullish sentiment and a potential price appreciation for the asset, CryptoQuant Open Interest is a two-edged sword that can also lead to potential market volatility.&nbsp;
Contrary to the rise in Open Interest, crowd sentiment is reported to have fallen significantly for Cardano alongside Shiba Inu and Dogecoin.&nbsp;
<blockquote>
 Crowd sentiment has dropped significantly for XRP, Dogecoin, and Shiba Inu after their respective price drops. Patient traders who have been waiting for the crowd to give up on these large-cap altcoins may finally have their buy opportunity with FOMO at 2024 low.
</blockquote>
Against the backdrop of some of the bullish signals, the XRP spot market recorded a $102.7 million outflow on June 19 after most holders decided to sell their assets and reduce their exposure.&nbsp;
The Open Interest for ADA, on the other hand, has been on a steady uptrend since May 2024. Specifically, the Open Interest grew from $190 million on May 1 to $268 million on June 6.&nbsp;
Outside the realms of the market data, Cardano’s Charles Hoskinson has disclosed the plans for the Cardano blockchain governance including the implementation of decentralized representatives (dReps). According to him, this is expected to be done within 90 days after the Chang hard fork. Interestingly, this follows a recent <a href="https://www.crypto-news-flash.com/cardano-nears-681-9m-ada-treasury-transfer-in-decentralization-push/" target="_blank" rel="noopener noreferrer nofollow">Crypto News Flash publication</a> disclosing the impending transfer of Cardano’s treasury valued at almost $681.9 million to the community.&nbsp;
<a href="https://www.crypto-news-flash.com/what-is-ripple-and-what-is-xrp-origin-and-beginner-guide/" target="_blank" rel="noopener noreferrer nofollow">Ripple</a> is also pursuing victory in its court case against SEC, with a favorable outcome expected to send the price to the moon.&nbsp;

Cardano (ADA) and XRP Rebound Sparks Surge in Short Positions

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Crypto News Flash

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