According to U.Today, cryptocurrency analytics platform Santiment has reported that XRP and Cardano (ADA) are among the most heavily-shorted cryptocurrencies following their recent relief bounces. The firm suggests that this could potentially be a positive sign for the bulls, as liquidated shorts could act as a catalyst for sustained price increases. This phenomenon, known as a 'short squeeze', occurs when a large number of holders bet against a certain cryptocurrency, causing a significant imbalance between supply and demand.
On July 17, XRP managed to decouple from Bitcoin, the leading cryptocurrency, gaining as much as 7% against it and outperforming the entire top 100. Meanwhile, ADA is benefiting from the anticipation surrounding the upcoming launch of the 'Chang' hard fork, which is expected to usher in a new era with decentralized governance. Cardano founder Charles Hoskinson has stated that this would be the biggest milestone in the history of the proof-of-stake network and the broader cryptocurrency industry.
Currently, XRP and ADA hold the 8th and 11th places by market value, respectively, after surging 3.7% and 4.7% over the past 24 hours. Despite this, the aforementioned cryptocurrencies have not experienced substantial volatility. Data from Coinglass shows that $1.02 million worth of XRP and $217,830 worth of ADA have been liquidated in one day. However, these liquidations could grow substantially if aggressive shorting continues, potentially leading to a rapid rise in price caused by a short squeeze and a cascade of liquidations.
