Cardano, Monero and a Few Other Altcoins Show Possible Incoming Price Rise per This Metric

February 24, 2022 Editor Monero 0

Tomiwabold Olajide

Cardano, Monero and some altcoins depict likely incoming price rise according to this metric

As per Santiment data, Cardano, Monero and a few other altcoins show signs of a possible price increase. The cryptomarket is recording declines for the second consecutive day. Bitcoin is down 1.74% at a present price of $41,313, alongside the majority of altcoins.

Tokens such as Cardano, Uniswap and Chainlink are recording losses between 8% and 11% in the last 24 hours, according to CoinMarketCap data.

On-chain analytics firm Santiment reports seeing a notable rise in leveraged short positions for different crypto assets recently. It notes that altcoins specifically are increasingly showing signs of overleveraged shorts and negative funding rates, stating that shorts liquidations might lead to a price rise.

This might be possible on the condition that if BTC begins to push markets upward, altcoins that see significant short liquidations will tend to use those liquidations as rocket fuel, it says.

ADA attained highs of $1.64 on Jan. 18 amid optimism around the Cardano blockchain. The ADA price suffered rejection and subsequently declined, aided by the ongoing market sell-off.

However, ADA fundamentals remain quite strong as Santiment reports active development across the Cardano blockchain and an increase in daily active addresses (DAA).

Sanbase Screener
Sanbase Screener, Source: Santiment

DAAs are a helpful metric to track network activity over time. In general, growing DAAs signal greater blockchain usage, while declining DAAs point to lower demand for the network. DAAs tend to be correlated with price activity. As such, DAAs can often act as a leading indicator for price action.

Active developments on the Cardano blockchain

IOHK gives a brief recap of news and announcements from projects building on Cardano over the last 10 days.

First, SundaeSwap announced its launch on Jan. 20 as QuickMint, a Cardano-based NFT platform, shared the news about the planned testnet launch on Jan. 19. Astarter also announced its open beta version event and some other plans.