Dogecoin leads as Cardano and XRP boost crypto market – Stocktwits
Dogecoin, Cardano, and XRP were the standout performers in the altcoin market as short liquidations surged, propelling the cryptocurrency market higher. Despite short-term fluctuations, Bitcoin managed to stay above $90,000 amidst heavy short positions being flushed out, with $94.9 million in shorts versus $17.3 million in long positions. On the other hand, Tron experienced minor gains of only 1.1% over the past day, with liquidations amounting to around $30,000.
During this period, Dogecoin (DOGE) led the pack with significant gains, trading at approximately $0.1435 and recording an increase of about 13.4%. Coinglass data revealed that nearly $14.4 million in liquidations were predominantly from short positions. Retail sentiment on Stocktwits reflected an ‘extremely bullish’ stance towards Dogecoin, with chatter levels escalating to ‘extremely high’ throughout the day.
Cardano (ADA) also displayed notable growth, trading near $0.396 and marking a 10.7% increase over the last 24 hours. Liquidations totaled around $3.3 million, predominantly from short positions as pessimistic bets unwound. Retail sentiment on Stocktwits showed a ‘bullish’ outlook for Cardano, with chatter levels transitioning from ‘normal’ to ‘high’ within the day.
Ripple’s XRP (XRP) was another standout performer, trading around $2.02, up roughly 8.0% on the day. Liquidations reached around $11.4 million, largely driven by shorts being squeezed out as the price momentum strengthened. Retail sentiment on Stocktwits improved from ‘bearish’ to ‘bullish,’ with chatter levels shifting from ‘normal’ to ‘high’ during the same period.
In parallel, Bitcoin (BTC) maintained its position at around $90,260, reflecting a 2% increase for the day. Total BTC liquidations amounted to $111.3 million, with shorts accounting for the majority at $94.9 million compared to $17.3 million in long liquidations. Retail sentiment around Bitcoin on Stocktwits switched from ‘bearish’ to ‘bullish,’ with chatter levels rising from ‘low’ to ‘normal’ over the day.
Despite reports indicating that long-term holders (LTHs) had recently begun accumulating Bitcoin, CryptoQuant analyst Julio Moreno disputed these claims. Moreno highlighted that the apparent surge in whale addresses was primarily due to exchanges consolidating balances into larger wallets, distorting on-chain observations. Data excluding exchange addresses revealed a decline in whale balances, mirroring a similar trend among 100-1,000 BTC wallets often used as indicators of ETF-sized holdings.
Furthermore, The Kobessi Letter pointed out a substantial increase of $24.4 billion on the Federal Reserve’s balance sheet during the week ending December 24. This rise, the largest weekly spike since the March 2023 banking crisis, potentially acts as a liquidity boost for cryptocurrencies, which are often perceived as high-beta proxies.
In a broader context, altcoins experienced a surge as short covering activities drove up prices of Ethereum (ETH), Solana (SOL), and Binance Coin (BNB). Ethereum traded near $3,124, marking a 4.2% increase within 24 hours, with roughly $124.9 million in liquidations predominantly driven by shorts. Solana saw a 5.1% increase, trading around $132.8, with approximately $22.5 million in liquidations majorly from short positions. Binance Coin rose to around $877.8, up 1.9%, while liquidations stayed relatively low at around $2 million, suggesting the rise was more spot-driven than leverage-led.
Overall, the cryptocurrency market displayed positive momentum, with short positions totaling approximately $329.4 million and longs amounting to $66.1 million in the last 24 hours.
