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.

We will be happy to hear your thoughts

Leave a reply

bitspuls.com
Logo