A major analytics firm says three altcoins, including Polkadot (DOT), are sending bullish signals as traders are so bearish on cryptocurrencies.
Santiment has revealed that traders are betting big on the sustained plunge in interoperability protocol Polkadot, payment network Stellar (XLM), and privacy-focused altcoin Monero (XMR).
As the weekend begins, traders are betting on several altcoins and profiting from their decline. Polkadot, Monero and Stellar all have large short positions on exchanges. It increases the likelihood of liquidation and price appreciation.
At the time of writing, DOT is trading at $5.29, XLM at $0.08 and XMR at $150.01. All three altcoins are flat on the day.
Traders are significantly shorting the three altcoins just as market participants are showing noticeable signs of capitulation and denial, according to the analytics firm.
References to dead and dead coins jumped to all-time highs in late November and are still at historically high levels. .”
Looking at Bitcoin and Ethereum, the supply of BTC and ETH on cryptocurrency exchanges is at its lowest level in four years, Santiment said.
Bitcoin and Ethereum continue to see their respective available supply dwindle. Both are now past four-year lows, indicating low selling risk. Tether, on the other hand, means high exchange supply and real-time buying power.
At the time of writing, Bitcoin is trading at $17,172 and Ethereum at $1,274.
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