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XRP and Cardano (ADA) experienced a consecutive two-day decline in prices as traders exhibited caution towards more speculative alternative cryptocurrencies. During this period, there was no significant token showing gains, with both XRP and Cardano falling by up to 3%.
Losses incurred in ADA coincided with on-chain data analytics tool Santiment's report indicating that Cardano had the most significant development activity among all blockchain networks in the previous month, surpassing even Polkadot and Kusama. Meanwhile, Bnb (BNB) experienced a 1.2% decline due to apprehensions stemming from a potential significant liquidation event on Venus Protocol, a lending and borrowing platform that operates on the BNB Chain.
CoinGecko's data reveals that Bitcoin and Ether saw little change in the past 24 hours, as the markets lacked substantial triggers for movement. In contrast, the wider equity markets and indexes extended their upward trajectory. Notably, Bloomberg reported that Nasdaq futures indicated further advancements in U.S. tech shares, building upon the momentum generated from the previous day's rally.
The surge in references to "buy the dip," a principle embraced by traders to signify acquiring assets at a discount compared to their underlying value, tapered off on social media platforms as the price movement remained stagnant.
“We saw a huge rise in 'buy the dip' mentions. This indicates that trader optimism was quite high that there would be a quick market recovery,” Santiment said in a Monday note. “But looks at how the wishful thinking has died down considerably in the past few days.”
The company gathered information from Reddit, X, Telegram, and 4Chan to uncover its results. A decrease in mentions indicated that traders were becoming less confident about a market rebound, and the report noted that “pessimism was beginning to take over again as market caps fade.”
Professional traders, on the other hand, were more inclined to employ advanced financial instruments like futures and options to generate profits. This insight was conveyed by analysts from the cryptocurrency exchange Bitfinex to CoinCryptoUs in a written communication.
“Data suggests that long volatility strategies have been deployed extensively over the weekend after the price crashed below the $25,000 level,” the analysts wrote. “In turbulent times, traders might expect high volatility to continue and use options strategies (like straddles or strangles) to profit from this.”
