Santiment: The probability of a pump for these 3 altcoins is increasing!

As you have been following on Kriptokoin.com, the eagerly awaited spot Ethereum ETF trading has finally started. However, it was followed by a sharp

After a week of decline, the cryptocurrency market is attempting to recover. The leading cryptocurrency, Bitcoin, surged as high as $67,000, while the leading altcoin, Ethereum, began to recoup its weekly losses.

Amid these developments, the possibility of a major rally for Ethereum’s rival Cardano and two other altcoins is rapidly increasing, according to crypto analytics firm Santiment.

Santiment: The probability of a pump for these 3 altcoins is increasing!

As you have been following on Kriptokoin.com, the eagerly awaited spot Ethereum ETF trading has finally started. However, a sell-off resulted in a sharp drop in the ETF price on Monday. This spread across the market and dragged the market down. However, some tokens may be preparing for strong rallies.

According to analytics platform Santiment, Ethereum rival Cardano (ADA), fan engagement token Chiliz (CHZ), and another Ethereum rival, Fantom (FTM), are all facing negative funding rates, setting the stage for ‘short squeezes’. In this context, the following statement is made by Santiment:

When choosing altcoins, beware of those that are being bet against (shorted) by other crypto traders. As we have seen with Chiliz, Fantom and Cardano, when funding rates on major exchanges enter the largely negative range, the probability of a liquidation leading to pumps increases.

Three altcoins made a similar move in April and May!

According to Santiment’s chart, the last time these three altcoins experienced such negative funding ratios was in April and May, when the tokens rallied and posted double-digit gains. Funding rates represent traders’ sentiment in the perpetual swap market. Moreover, the amount is relative to the number of contracts. When short positions dominate, traders are willing to pay long traders a negative funding rate.

A short squeeze occurs when traders who borrow an asset at a certain price in the hope of selling it at a lower price and pocketing the difference are forced to buy back their borrowed assets as momentum moves against them, triggering further rallies. At the time of writing, ADA was trading at $0.4121, up more than 4% in the past 24 hours. Meanwhile, CHZ is changing hands at $0.06975, up 5.6% on the day. Finally, FTM was trading at $0.4503, up 0.23% in the last 24 hours.

The crypto market may be on the verge of a breakout!

Furthermore, Santiment claims that crypto markets may be about to break out based on the increasing chatter about crypto assets on social media platforms. In this regard, the analytics platform makes the following assessment:

Crypto discussion rates are finally rising, especially on Telegram, Reddit and X. With social volumes on the rise, bulls are hoping that overall network activity will soon pick up, leading to more benefits and higher prices around the corner.

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