According to data from the analysis company Santiment, the blockchain game cryptocurrency Axie Infinity (AXS), the data protection coin Monero (XMR) and four other Altcoins are eligible to make rallies.
In addition to AXS and XMR, the company also focuses on the decentralized application platform (DApp) Quantum (QTUM), the Web3-focused Ankr, the Solana-based liquidity provider Raydium (RAY) and its competitor XRP is DigiByte (DGB).
“There are usually at least a couple of cryptocurrencies that bearish traders sell heavily short at one point in time. Our latest analysis examines the negative funding rates from XMR, AXS, QTUM, ANKR, RAY and DGB for potential opportunities. “
The source: mood
A short squeeze occurs when too many short sellers enter the market and then are hit by an unexpected rally that triggers a mass liquidation reaction and drives the price higher. According to the company, bearish XMR traders put themselves at risk if such a scenario occurs.
Santiment also said the decentralized financial sector is poised for healthy growth in the new year. The company identified 3 of the most bullish DeFi coins that were showing strength while much of the market traded sideways.
“DeFi assets are showing some good growth signs to shine in 2022. YFI, UNI and AAVE have all grown well so far, with Monday initially looking optimistic for a number of altcoins. “
The source: mood
In a new strategy meeting, analyst Nicholas Merten also agrees with this view. He said that Bitcoin is stagnating a bit, but that the money is not moving completely out of the market, but rather in altcoins. What interests him most is how disruptive DeFi can be.
First on his list for 2022 is the Ethereum-based automated exchange Uniswap, and he looks at UNI’s activities in the BTC trading pair.
“One of the scenarios that we really like here is UNI. Basically, UNI / BTC is bouncing back to this level from October 2021. With a decreasing resistance line from May 2021 and an average support at 0.0003219 BTC, we can not only get the support at the very important level, but also the previous support in October / See October 2020, resistance January 2021.
It is starting to rise towards the resistance and appears ready to rise higher, make up for some losses and continue moving north. “
The source: Nicholas Merten
UNI is currently down almost 2% in the past 24 hours, trading at $ 18.16. However, compared to 2 weeks ago, the price has gone up from under $ 15.
Bitcoin also fell similarly over the same timeframe, despite quickly breaking back to the $ 50,000 mark late last week. BTC is currently trading for $ 46,475.
The DataDash host is also interested in the decentralized financial platform Aave.
“The really exciting thing is that AAVE has taken some serious steps. About 70% of the time has been held here in the past few weeks.
The price has increased from around 346,000 satoshi, which is now rising to nearly 600,000 satoshi, especially 580,000 currently.
Several sizeable breakouts against Bitcoin brought it back to levels not seen since early October 2021, causing months of losses.
This is an early sign of the next breakthrough for the entire industry. “
Source: Nicholas Merten
At the time of writing, AAVE is down nearly 5% over the day to $ 262.
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