Probabilities of a large rally for EthereumETH) rival Cardano (ADASantiment’s crypto analysis firm says that the popularity of ( and two other altcoins) is rapidly rising.
Santiment reports The Chiliz Fan Engagement Token (ADA) is a fan-engagement token that can be used by fans to engage with the Chiliz brand.CHZ) and ETH rival Fantom (FTMNegative funding rates are a major factor in short-term squeezes.
“When selecting altcoins, pay attention to those being bet against (shorted) by other crypto traders. When funding rates on large exchanges get heavily in negative range, like we see with Chiliz, Fantom and Cardano, there are increased chances of liquidations leading to pumps.”
Santiment’s graph shows that when these projects had similar funding declines in April and may, tokens rebounded and made gains of double digits.
The funding rate represents traders’ mood on the market for perpetual swaps, and is proportional to number of contracts. Negative funding rate indicates that traders with short positions are in control and willing to compensate long-term traders.
Short squeezes occur when traders borrow assets at certain prices in the hope of selling them for less to pocket the differences. They are then forced to purchase the borrowed assets as the momentum turns against them and triggers further rallies.
ADA was trading at $0.39 when this article was written, down over 5% from the previous 24 hours. Chiliz, on the other hand, is currently trading at $0.0663, a 5.7% drop for the day. Fantom, meanwhile, is at $0.43, a 11% decline in the past 24 hours.
Santiment says The increasing chatter about digital assets on social media may indicate that the crypto market is on its way to breaking out.
“Crypto discussion rates are finally looking up, particularly on Telegram, Reddit and X. With social volumes rising, bulls are hoping to see overall network activity rising soon as a result, leading to more utility and higher prices around the corner.”
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