Top 5 Cryptocurrencies Most Targeted by Short Sellers During Bear Markets

Jakarta, Pintu News – When the crypto market enters a bear market phase, selling pressure increases sharply and traders tend to go short to profit from the price drop.

Amidst high volatility and macroeconomic uncertainty, not all crypto assets are treated equally by market participants. Some assets become the main target of short selling because they are considered overvalued and some other reasons. In this article, we will discuss 5 cryptos that are most often targeted by short sellers during bear markets.

And if you want to try shorting strategies easily and safely, you can do so directly on Pintu Futures, which is specially designed for a fast and user-friendly derivatives trading experience.

Solana (SOL)

Recent data shows that the majority of traders are currently taking short positions against Solana (SOL). The percentage of short positions stands at 52.09%, while long positions stand at 47.91%. This indicates a slightly bearish market sentiment in the short term.

Also read: Solana Price Potentially Breaks $150? Here are the Drivers!

Value Position Distribution:

• Total value of long positions: $1.77 billion
• Total value of short positions: $1.92 billion

This difference indicates that there is a tendency for the market to anticipate a correction or selling pressure, although the difference is still within reasonable limits. This imbalance also opens up the potential for a short squeeze, especially if the SOL price experiences a sharp rise and forces short sellers to forcibly close their positions.

Dogecoin (DOGE)

Recent data shows that market sentiment towards Dogecoin (DOGE) is currently bearish. The percentage of short positions reaches 54.62%, while long positions are only 45.38%. This reflects that the majority of traders are currently betting on a decline in the price of DOGE in the near future.

Position Value Distribution:

• Total value of long positions: $270.51 million
• Total value of short positions: $325.57 million

There is a significant difference between the value of long and short positions – about $55 million more in the case of short positions. This reinforces the signal that the market is collectively in defensive mode or pessimistic about DOGE’s price performance.

Shiba Inu (SHIB)

Recent data shows that the Shiba Inu (SHIB) derivatives market is currently slightly dominated by short positions, with 52.27% of traders taking short positions, while 48.73% are in long positions. This difference illustrates the mild bearish sentiment among traders towards SHIB’s price movement.

Position Value Distribution:

• Total value of long positions: $20.44 million
• Total value of short positions: $21.50 million

The difference of around $1 million between long and short positions shows that despite the selling pressure, the market is still relatively balanced, and there is no extreme dominance from either side. This is usually the case when the market is waiting for an important catalyst, be it technical or fundamental news.

Cardano (ADA)

Currently, derivatives market sentiment towards Cardano (ADA) tends to be strongly bearish, with 58.46% of traders being in a short position, and only 41.54% going long. This suggests that the majority of market participants are currently anticipating a decline in the price of ADA in the near future.

Also read: Cardano Bullish Trend: ADA Ready to Rise Up to 40%?

Position Value Distribution:

• Long positions: $131.05 million
• Short positions: $184.45 million

There was a larger gap of $53.4 million on the short side, indicating significant selling pressure from derivatives traders. This is a strong indication that ADA is currently one of the dominant short targets in the market.

Avalanche (AVAX)

Currently, the derivatives market sentiment towards Avalanche (AVAX) shows a slight bearish trend, with 52.63% of traders in short positions, and 47.37% in long positions. Although not too extreme, this dominance of short positions indicates that most market participants are speculating that the price of AVAX could potentially fall in the near future.

Position Value Distribution:

• Total value of long positions: $81.37 million
• Total value of short positions: $90.39 million

With almost $9 million more on the short side, selling pressure still dominates the AVAX derivatives market. This reflects investors’ wariness of further price movements, perhaps due to technical, macro, or AVAX’s performance relative to other altcoins.

That’s the latest information about crypto. Follow us on Google News to get the latest crypto news about crypto projects and blockchain technology. Also, learn crypto from scratch with complete discussion through Pintu Academy and stay up-to-date with the latest crypto market such as bitcoin price today, xrp coin price today, dogecoin and other crypto asset prices through Pintu Market.

Enjoy an easy and secure crypto trading experience by downloading Pintu crypto app via Google Play Store or App Store now. Also, get a web trading experience with various advanced trading tools such as pro charting, various types of order types, and portfolio tracker only at Pintu Pro.

*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.