Cardano Among Alts Likely To See Price Boosts, Santiment Says

Cardano (ADA) is among the altcoins that are likely to experience price boosts, according to on-chain analytics firm Santiment. In a recent post, Santiment discussed altcoins that are being heavily shorted in the derivatives market, focusing on the funding rate as an indicator. A positive funding rate implies a bullish sentiment, with long contract holders paying a premium to short investors. Conversely, a negative funding rate suggests a bearish sentiment, with short holders outweighing long ones. Santiment specifically looked at the funding rate on Binance, the largest cryptocurrency exchange. It found that Cardano, as well as Chiliz (CHZ) and Fantom (FTM), have had a negative funding rate for the past five weeks. Historically, aggressive shorting against an asset has positively affected its price, as it can trigger a liquidation squeeze. The chart provided by Santiment shows that Cardano, Chiliz, and Fantom experienced a surge in prices after a similar level of shorting earlier in the year. Therefore, it is possible that short liquidations could occur again for these altcoins, leading to a rally in their prices. Cardano had recently surpassed the $0.45 mark but has since dipped and is currently trading around $0.39.