Bearish Bets Fueling Altcoin Rebounds?
A recent analysis from Santiment suggests that **bearish bets** on Binance for **Tron (TRX), Stellar (XLM), and 1inch (1INCH)** might actually be **fueling potential rebounds**. The **Funding Rate**, an indicator of sentiment on derivatives exchanges, has been negative for these coins, signaling a bearish outlook. This means short sellers are outpacing long holders, anticipating a price drop.
However, Santiment highlights that heavy bearish bets can lead to **liquidation events**. If these liquidations are triggered, they could act as a “rocket fuel” for the price, potentially leading to a sharp rebound.
Let’s take a closer look at each coin:
Tron (TRX)
Tron, the largest of the three, has experienced a bearish week, mirroring the broader market trend. However, monthly returns for TRX investors have been positive, outperforming Bitcoin (BTC) with an 18% surge.
Despite the recent dip, Tron’s price performance suggests that the coin may be poised for a potential rebound.
It’s worth noting that these are just potential scenarios, and the market is constantly fluctuating. However, the data suggests that a potential rebound could be on the horizon for these altcoins, especially if liquidations occur.
