Cryptocurrency analytics firm Alphractal has released a new report highlighting trends in the altcoin derivatives market.
Cryptocurrency analytics firm Alphractal has shared an interesting insight into the altcoin derivatives market. In its latest report, the firm's analysts took a look at the highest Long/Short ratios among altcoins.
According to data released Wednesday, Raydium (RAY) currently has the greatest relative positioning of Longs to Shorts. Other altcoins with a notably high long positioning include Gitcoin (GTC), Contentos (COS), Polkadot (DOT), Alpha Finance Lab (ALPHA), Melania (MELANIA), Audius (AUDIO), and Rezolut (REZ).
Alphractal noted that extremely high Long/Short Ratios usually prevent altcoins from performing well, but they can also set the stage for a bottom. In such a case, a short squeeze dynamic may develop if prices begin to rise, leading traders to close their longs and open shorts.
“RAY has the highest Long/Short Ratio among all Altcoins. Additionally, GTC, COS, DOT, ALPHA, MELANIA, AUDIO, and REZ follow RAY with the highest levels of Longs relative to Shorts. Extremely high Long/Short Ratios usually prevent Altcoins from performing well, but…” Alphractal said.
Its analysts added that for a true short squeeze to materialize, a significant increase in Open Interest volume would be necessary. At the moment, no major uptick in Open Interest has been observed across altcoins, suggesting that prices may continue to move sideways in the coming days.
An image shared by the company showed the current Long/Short ratios across the altcoin market.
Meanwhile, Alphractal CEO Joao Wedson pointed out a development on the Bitcoin side. He said that the Bitcoin/Stablecoin Reserve Ratio on Binance is once again flashing a bullish signal in the $76,000-$77,000 zone. This zone has seen the ratio move above 100% in the past, and it has been closely followed by substantial rallies in the Bitcoin price.
“As we can observe, the Bitcoin/Stablecoin Reserve Ratio on Binance has once again moved above 100%, a level that has historically been closely followed by significant rallies in BTC’s price. This time, the zone to watch is $76,000-$77,000.” Wedson said.
