Cryptocurrency insights firm Santiment says three altcoins are currently worth keeping an eye on as historically bullish indicators have started to flash.
Santiment told his 188,000 followers on social media platform X that lending platform Aave, metaverse project Decentraland (MANA) and indexing protocol The Graph (GRT) were recording large short interest on the world's largest cryptocurrency exchange, Binance.
An imbalance among short sellers often leads to a short squeeze, a sudden and volatile rally that leads to cascading liquidations of short positions.
Santimento says.
“As cryptocurrencies continue their strong recovery, altcoins to watch include Decentraland, The Graph, and Aave. All of the top 100 stocks by market cap are showing significant short interest ratios on Binance, suggesting liquidations could drive significant price gains.”
But Santiment also reported that whale trading has dropped significantly since the middle of last month, suggesting that major players are taking their time before making their next move.
“Cryptocurrency whale trading has seen a notable decline since mid-August.
Bitcoin: Transfers of over $100,000 down 33.6% since March/April peak
Ethereum: Transfers over $100,000 down 72.5% since March/April peak
This is not necessarily a bearish signal — whales can be equally active in bull and bear markets — but it does indicate that during times of extreme crowd greed or extreme fear, major large investors are biding their time, waiting for their next move.
“Since the BTC all-time high 6 months ago, the crowd has been highly reactive to medium-sized fluctuations. Based on sentiment patterns, a pullback to $70,000 could be accompanied by major FOMO (fear of missing out) from the crowd, while $45,000 could lead to major FUD.”
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Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies and digital assets. Transfers and transactions are at your own risk and you are responsible for any losses incurred. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets and is not an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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