Bitcoin Cash and Loopring Set Sights on Recovery Amidst Market Correction

Author : Dency Emily | Published On : 25 Jan 2024

Despite a broader market correction, Bitcoin Cash (BCH) and Loopring (LRC) are capturing attention with signs of potential recovery, fueled by the liquidation of short positions. According to insights from Santiment, a leading crypto intelligence tracker, these altcoins are standing out amidst the general downturn in the crypto market, especially due to significant shorting activity observed on platforms like Binance.

The overall crypto market has been undergoing a correction, impacting the prices of various cryptocurrencies, including Bitcoin Cash and Loopring. Santiment's analysis highlights a prevailing bearish sentiment in the derivatives market, evident from the negative funding rates of both BCH and LRC, indicating a prevalence of short positions.

However, Santiment analysts suggest that this bearish sentiment might set the stage for a potential price rebound for Bitcoin Cash and Loopring. Historical data indicates that such scenarios often lead to recoveries when there is a substantial liquidation of short positions. In the last 24 hours alone, BCH and LRC have witnessed $117,700 and $10,500 in liquidated short positions, respectively.

As of the latest data, Bitcoin Cash is trading at around $236.15, reflecting a nearly 4% increase, while Loopring is priced at $0.2328, showing an uptick of almost 4.8%. These modest increases align with Santiment's analysis, suggesting the early signs of a potential recovery.

Bitcoin Cash currently holds a market capitalization of $4,641,103,269, positioning it at the 22nd rank on CoinGecko. Additionally, the fully diluted valuation (FDV) of Bitcoin Cash is approximately $4,966,897,789. The FDV represents a theoretical projection of the maximum market cap, assuming the circulation of all 21 million BCH tokens.

In the midst of uncertainty and bearish trends in the current crypto market, the potential recovery of Bitcoin Cash and Loopring offers a ray of hope for investors. However, it is crucial to approach these developments with caution, considering the inherent volatility of the cryptocurrency market.