Short holdings on three key cryptocurrencies—Decentraland (MANA), The Graph (GRT), and Aave (AAVE)—are rising on Binance. Recent Santiment data alludes to a robust market comeback among altcoins. Currently displaying strong short ratios, these tokens fall into the classification of top 100 market capitalization. Short holdings create a higher risk of liquidations. Should this occur, these token values might rise dramatically.
🧐 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. pic.twitter.com/6LaQ4HnyBn
— Santiment (@santimentfeed) September 12, 2024
Investigating Negative Funding Rates
Data from Santiment exposes negative financing rates for all three tokens. Decentraland (MANA) has a financing rate of -0.018373%; short positions dominate long ones. Following a funding rate of -0.014088%, the Graph (GRT) shows a comparable increase in short trader activity. Having a financing rate of -0.021201%, Aave (AAVE) boasts the best short ratio. These negative rates suggest that traders betting on price declines currently dominate the market. However, if the market shifts in the opposite direction, it could trigger liquidations for these traders.
Strong Territory and Market Influence
One important find is the Heavy Trader Short Territory. This zone, which is defined by a dashed line, appears when funding levels fall below a particular threshold. Mana, GRT, and AAVE falling into this range raises the likelihood of liquidations. Should short traders close their bets, prices would immediately rise. Under such circumstances could trigger a short squeeze, resulting in major price growth.
Polygon (MATIC) and Aave (AAVE) Indicate a Bullish MomentumBitcoin Patterns and Altcoin Performance
The graph also indicates a correlation between the price of Bitcoin and the financing rates of certain alternative coins. According to the observation, Bitcoin swings about $58,000, experiencing minor price declines as the funding rates move into negative terrain. Still, these are sometimes accompanied by a comeback, which fits the liquidation of short holdings. This could raise MANA, GRT, and AAVE prices.
Even with the negative attitude, if short positions start to unwind the market may change fast. This combination of factors makes MANA, GRT, and AAVE worth watching as potential price movements could occur.
