Bitcoin Cash (BCH) and Loopring (LRC) have experienced notable price drops since Monday, reflecting the wider downturn in the crypto markets. Despite this, Santiment, a crypto intelligence firm, suggests a potential rebound for these altcoins. South African investors, increasingly active in the crypto space, are monitoring these developments closely.
Data from Santiment indicates that derivatives traders on platforms like Binance are heavily shorting BCH and LRC. This trend, influenced by the recent crypto market slump, might soon shift. Santiment’s analysts observe signs of an imminent price bounce for both BCH and LRC. Should short positions be liquidated in significant numbers, it could trigger a recovery in their prices. This prediction draws on historical patterns of similar asset recoveries.
The current sentiment in the derivatives market is predominantly bearish, as seen in the negative funding rates for Bitcoin Cash and Loopring. A negative funding rate typically indicates that traders are betting against the asset, expecting further price drops.
However, Santiment’s analysis suggests a likely turnaround for BCH and LRC. The initial indicator of this recovery would be the liquidation of short positions in these cryptocurrencies. In the last 24 hours, short positions worth $117,700 in BCH and $10,500 in LRC have been liquidated. A consistent increase in these figures could signal an upcoming price surge, a common occurrence in such scenarios.
At present, BCH’s price stands at $232.60 (approximately ZAR 4,416.34), showing a near 2% increase on the day. Similarly, LRC’s price is at $0.2303 (around ZAR 4.37), with a nearly 1% rise. These modest upticks are being closely watched by the South African crypto community, as they could mark the beginning of a broader recovery trend in these altcoins.
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