• 24 June, 2024
Market News

Bitcoin Cash and Loopring Eye Recovery Amid Market Correction

Bitcoin Cash (BCH) and Loopring (LRC) are emerging as focal points of interest due to their recent price movements, as reported by analytic company, Santiment on X. Despite a general downturn in the crypto market, these altcoins are showing potential signs of recovery. This development comes in the wake of intense shorting activity by derivatives traders, especially on platforms like Binance.

The broader crypto market has been experiencing a correction, with many cryptocurrencies, including Bitcoin Cash and Loopring, witnessing significant price declines. According to Santiment, a renowned crypto intelligence tracker, there is a dominant bearish sentiment in the derivatives market. This sentiment is reflected in the negative funding rates of both BCH and LRC, indicating a prevalence of short positions.

Source: Santiment

However, despite the bearish market sentiment, Santiment analysts suggest that both Bitcoin Cash and Loopring could be poised for a price rebound. Historically, similar scenarios have often led to price recoveries when short positions begin to get liquidated in large volumes. This liquidation acts as a catalyst, potentially driving up the prices of the affected cryptocurrencies. In the past 24 hours, BCH and LRC have seen $117,700 and $10,500 in short positions liquidated, respectively.

At present, Bitcoin Cash is trading at around $236.15, marking a near 4% increase, while Loopring is priced at $0.2328, up by almost 4.8%. These modest upticks hint at the beginnings of a recovery, aligning with Santiment’s analysis.

The market capitalization of Bitcoin Cash stands at $4,641,103,269, placing it at the 22nd rank on CoinGecko. Additionally, Bitcoin Cash’s fully diluted valuation (FDV) is approximately $4,966,897,789. This FDV is a theoretical projection of the maximum market cap, assuming all 21 million BCH tokens were in circulation.

While the current crypto market is characterized by uncertainty and bearish trends, the potential recovery of Bitcoin Cash and Loopring offers a glimmer of hope to investors. It is important, however, to approach these developments with caution and an informed perspective, keeping in mind the inherent volatility of the cryptocurrency market.

Crypto Market Dips, Top Tokens See Red; Bitcoin Holds Steady Read Previous

Crypto Market Dips, Top Tokens See Red; Bitcoin Holds Steady

Seven Crypto Titans Amass $55 Million in Unrealized Gains: Spot On Chain Report Read Next

Seven Crypto Titans Amass $55 Million in Unrealized Gains: Spot On Chain Report