The price of Bitcoin (BTC) has been stuck for more than 4 months between US$25 thousand and US$30 thousand, which leaves investors worried about their future moves and whether the best short orders are Long or Short.
However, according to data from Santiment, the company that nailed Bitcoin’s recovery at the beginning of the year, Some altcoins have announced growth because the supply of these assets in centralized exchanges (CEX) is decreasing with their investors withdrawing tokens from brokers and transferring them to external wallets.
According to Santiment, the provision of native tokens is based on the platform Ethereum (ETH) such as SushiSwap (SUSHI) and Injective Protocol (INJ), as well as the decentralized financial platform CurveDAO (CRV) and the cross-chain protocol Biconomy (BICO), declining exchanges as assets are transferred to ensure self-custody.
Moreover, the company promotes it Reef Finance (REEF) and Aelf (ELF) are among the assets being moved from exchanges to cold wallets. Santiment emphasized that this movement is generally seen as a positive sign, because historically large movements of assets into cold portfolios tend to increase prices as it reduces the supply for sale, which reduces the pressure from the bears.
In the case of the Ethereum-based synthetic asset platform, Linear Finance (LINA), and the metaverse platform, Decentraland (MANA), Santiment observed an increase in the number of transactions made by large investors, known as whales. This happened even though these cryptocurrencies had a relatively modest performance in 2023.
Generally, the increase in whale transactions indicating renewed interest from large investors and leading to a rally.
On the other hand, Santiment’s analysis also shows that the level of discussion Shares of Bitcoin (BTC) on social media fell to the lowest level in three months. This comes as interest in other altcoins is rising.
that The decline in interest in Bitcoin is seen as a sign that traders are turning to other assets, which may reflect “market greed” towards altcoins.
Altcoins
While Santiment pointed to cryptocurrencies with growth opportunities, analyst Nicholas Merten emphasized that the decrease in market liquidity could cause Cardano (ADA), XRP and Binance Coin (BNB) to fall further.
According to Merten, BNB could fall more than 38% from its current value after falling below two high support levels. The trader also admitted that XRP is facing downward pressure from the large volume of trading that could cause a collapse of 70%.
Closing the list of cryptocurrencies that may fall, the trader predicts that Cardano will fall more than 37% from its current value after a bullish triple bottom price pattern fails to form.
“Look here at ADA/USD. Many people are excited about the potential for Cardano to live in a triple bottom here. But I have to tell you: notice here how, as time progresses, the constant resistance, the weaker relative high here compared to the past. I think it falls lower. I think it will fall to US $ 0.15″, he concluded.
