Crypto insights firm Santiment says that three altcoins are now worth keeping an eye on as one historically bullish indicator begins flashing.
Santiment tells its 188,000 followers on the social media platform X that lending platform Aave, metaverse project Decentraland (MANA) and indexing protocol The Graph (GRT) seeing large short ratios on Binance, the largest crypto exchange in the world.
An imbalance in short sellers can often lead to a short squeeze or a quick, volatile bounce upward that liquidates short positions in a cascading manner.
Says Santiment,
“Altcoins to watch as cryptocurrency continues to enjoy its strong rebound include Decentraland, The Graph, and Aave. Each of these top 100 market caps are seeing significant short ratios on Binance, implying liquidations would lead to big price jumps.”
However, Santiment also reports that whale transactions have plummeted significantly since the middle of last month, indicating that the larger players are taking their time before making their next move.
“Cryptocurrency’s whale transactions have seen a noticeable drop-off since mid-August
Bitcoin: -33.6% drop in $100K+ transfers since March/April peak
Ethereum: -72.5% drop in $100K+ transfers since March/April peak
This isn’t necessarily a bearish signal. Whales can be equally active during a bull or bear market. But this does indicate that large key stakeholders continue to bide their time as they wait to make their next moves during times of extreme crowd greed or extreme fear.
The crowd has been very reactive to mid-sized swings since BTC’s all-time high 6 months ago. Based on sentiment patterns, a return to $70K would likely come with major crowd fear of missing out (FOMO), and $45K would likely lead to major FUD.”
Generated Image: Midjourney