According to data from crypto analytics firm Santiment, the blockchain-based gaming world Axie Infinity (AXS), built on privacy Monero (XMR) and four other altcoins in preparation for a possible rally.
According to Santiment, these two altcoins as well as decentralized application (dApp) platform Quantum (QTUM), Web3-focused Ankr, Solana-based liquidity provider Raydium (RAY) and Ripple (XRP) competitor DigiByte (DGB) stand out. among crypto assets.
“Our latest insight examines the ‘negative funding rates’ of XMR, AXS, QTUM, ANKR, RAY and DGB for potential opportunities.”
A short-term squeeze occurs when an excessive amount of “short sellers” enter the market, followed by an unexpected price spike that causes a chain reaction of liquidations and thus a strong rally. According to the firm, traders experiencing a drop in Monero make themselves vulnerable to such a scenario.
Santiment also thinks that the decentralized financial sector of crypto appears poised for healthy growth this new year. The firm identifies three of the bullish-looking DeFi coins that show strength, while most cryptoassets in the market are trading sideways.
“DeFi assets are showing some nice signs of growth to start 2022. YFI [Yearn.Finance], UNI [Uniswap] and AAVE is doing nicely so far with a bullish outlook for several altcoins on the first Monday of the year.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.