The crypto money market continues to struggle for survival in winter conditions made difficult by FTX. Lack of confidence pushes investors to be cautious. In this environment, investors and traders are exploring potential altcoin projects. Analytical firm Santiment says three altcoin projects are potential candidates for price increases. In this context, the analytics platform explains the reasons for their choice.
There are bullish setups for 3 altcoins according to Santiment
As the leading crypto Bitcoin continues its bearish trend, its price is gradually forming support near the $17,000 level. However, BTC’s oscillating price action in the $16,700-$17,300 region seems to be encouraging traders to make some interesting setups in several altcoin projects. An interesting setup is emerging for Polkadot (DOT), Stellar (XLM) and Monero (XMR) that will lead to price increases in the short term, according to on-chain analytics firm Santiment. In this context, Santiment makes the following statement:
Since the weekend started, traders have been betting against several altcoins to profit from their declines. Polkadot, Monero, and Stellar all have large short positions on exchanges. Typically, this increases the chances of liquidation and price increases.
📊 As the weekend has kicked off, traders are betting against several #altcoins to profit on their downfalls. #Polkadot, #Monero, and #Stellar all have large #short positions on exchanges. Typically, this increases #liquidation & price rise likelihoods. https://t.co/5CWkrR1Jih pic.twitter.com/vkb8CmUQpJ
— Santiment (@santimentfeed) December 10, 2022
According to Santiment, since the weekend began, traders have been betting against several altcoins to profit from price drops. The on-chain analytics firm notes that altcoin projects Polkadot, Monero, and Stellar are seeing large short positions on exchanges. He also notes that this also shows the dominance of short positions. Santiment argues that such a scenario increases the likelihood of liquidation and therefore the possibility of a price increase.
Cryptocurrencies with a large dominance of short positions are likely to explode in market rallies as investors who bet against these assets are likely to close their short positions. Because there was a possibility that this could cause what is known as ‘short squeeze’.
The environment of uncertainty in the crypto market continues
Meanwhile, bears continue to dominate the crypto market. Although Bitcoin managed to stay above $ 17 thousand, it is having a hard time keeping up. At press time, Bitcoin is moving sideways at $17,200. Most of the crypto assets have also exhibited similar movements in the last 24 hours. Among the altcoin projects Santiment saw as potential, Monero (XMR) performed slightly better. The altcoin was trading at $150, up 2% on a daily basis at the time of writing.
There is a serious sense of uncertainty in the market. Concerns over strict cryptocurrency regulations are intensifying. Fears of bankruptcy and contagion from the FTX collapse remain. Given all this, it is quite difficult to determine the best time to invest in crypto. Therefore, it is very important to pay attention to market trends. Experts also warn about this issue.
However, it is necessary to take into account that positive news has helped a coin rise. Polkadot founder Gavin Wood recently shared that the first Polkadot OpenGov Scholarship to whitelist root calls on the Kusama network has just been launched. Moreover, cryptocoin.comAs you follow, BitMEX DOT, one of the major crypto exchanges, has been listed.
