Santiment also says that the privacy-focused Monero (XMR) blockchain is showing some under-the-radar signals that could be bullish. According to the company, Monero is being discussed on forums at the highest rate in 10 months.
“Monero split from the crypto bundle one Thursday last week. The asset has been quiet since hitting $513 on May 7, 2021. But with XMR being one of the few coins pumping at the moment, it is seeing a discussion rate. Forum comments highest in 10 months. ”
Looking at BTC and the broader market, Santiment says that traders may be over-confident in predicting a further price drop.
Historically, the company says that current conditions often lead to short squeezes, which is when too many traders attempt to short the market only to encounter an unexpected rally that leads to A series of liquidations pushed the price even higher. .
“Bitcoin and several other altcoins revealed higher-than-normal short-term ratios, suggesting that traders are expecting prices to drop. Traditionally, when this funding rate is extremely negative, digital shorts are liquidated and prices go up. ”
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