- Investors are massively shorting 1INCH, TRX, and XLM.
- These tokens might skyrocket once the shorts are liquidated.
- In the past seven days, 1INCH has outperformed TRX and XLM.
Read also: Altcoin Market Primed for September Breakout, Says Analyst
Blockchain analysis platform Santiment has pointed to investors who have shorted against 1Inch (1INCH), Tron (TRX), and Stellar (XLM), suggesting these altcoins could see a significant price jump once liquidations begin, should their valuations rise against these bets.
Through a post on X (formerly Twitter), Santiment explained how, contrary to the investors’ short positions, their prices will rise once liquidations start. The blockchain analytics firm added:
“When we see heavy bets against an asset, liquidations can occur which act as “rocket fuel” for the asset’s price to rise higher. Going against the crowd of doubters could pay dividends.”
A liquidation event is triggered once the price of an asset starts to move, not in the favor of the investors who have longed or shorted their assets. In such a scenario, the amount liquidated boosts the price of the asset further which could be bullish, in case shorts get liquidated, or bearish, in case longs get liquidated.
Price Analysis of XLM, 1INCH, and TRX
Read also: 4 Altcoins Shaking Off the Slump: Bullish Reversals in Sight?
XLM, 1INCH, and TRX are expected to become volatile once the liquidation of shorts begins. According to the data from CoinMarketCap, Tron (TRX), the ninth-largest altcoin by market capitalization, has dropped 0.5% in the past 24 hours, and is trading at $0.1497. TRX is down 5.94% in the past 7 seven days but has jumped a whopping 24.58% in the last 30 days.
Further, XLM is up 1,38% and is trading at $0.09142 with a market cap of $2.6 billion. The altcoin’s price is down 2.23% in the past week but up 11.90% in the past month. However, since September 2023, XLM is down 27.11%, performing poorly.
Finally, 1INCH is up 7.17% in the past 24 hours and has risen 3.96% in the past seven days. Meanwhile, in the past 30 days, the altcoin rose 7.33%. Since September 2023, the cryptocurrency is up 9.06% and currently has a market cap of $326 million.
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