Santiment reveals that traders are betting heavily on the continued decline of interoperability protocol Polkadot, payments network Stellar (XLM), and privacy-focused altcoin Monero (XMR).
“As the weekend has kicked off, traders are betting against several altcoins to profit on their downfalls. Polkadot, Monero and Stellar all have large short positions on exchanges. Typically, this increases liquidation and price rise likelihoods.”
At the time of writing, all three altcoins are flat on the day.
According to the analytics firm, market participants are showing significant signs of capitulation and downside, while traders are heavily shorting the three altcoins.
“Mentions of dead and deadcoin jumped to all-time high levels in late November, and still are high historically. This traditionally increases the probability of a crypto price bottom.”
Looking at Bitcoin and Ethereum, Santiment says that the supply of BTC and ETH on crypto exchanges is at a four-year low.
“Bitcoin and Ethereum continue seeing their available respective supplies go lower and lower. They have now both breached four-year lows, implying a lower sell-off risk. Tether, meanwhile, has high exchange supply, implying greater real-time buying power.”