According to a leading analytics firm, a trio altcoins such as Polkadot (DOT), are signaling a bullish signal. This is because crypto traders have turned extremely bearish.
Santiment reveals how traders are heavily betting on the steady plummet of Polkadot’s interoperability protocol, Stellar (XLM), as well as privacy-focused altcoin Monero. (XMR).
“As the weekend has kicked off, traders are betting against several altcoins to profit on their downfalls. All three exchanges have large short positions, including Stellar, Monero, and Polkadot. Typically, this increases liquidation and price rise likelihoods.”
At the time this article was written, DOT changes hands for $5.29 and XLM for $0.08 respectively. XMR is worth $150.01. All three altcoins are currently flat.
Analytics firm says traders are hugely shorting altcoins, and market participants are showing noticeable signs of capitulation.
“Mentions of dead and deadcoin jumped to all-time high levels in late November, and still are high historically. This traditionally increases the probability of a crypto price bottom.”
Santiment, looking at Bitcoin and Ethereum, says that the supply BTC and ETH is at a low four-year high on crypto exchanges.
“Bitcoin and Ethereum continue seeing their available respective supplies go lower and lower. They both have now reached their four-year lows. This suggests that there is a lower selling risk. Tether, meanwhile, has high exchange supply, implying greater real-time buying power.”
Bitcoin currently trades for $17,172 while Ethereum is worth $1,274.
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