On-chain data provider Santiment has revealed that the significant increase in short selling of XRP and ADA could actually be a blessing in disguise for the two cryptocurrencies. Despite their recent price dips, the heavy shorting activity might just give them the push they need to rise in value. This is because when short sellers realize their losses, they will be forced to buy back the stocks, triggering a short squeeze that could propel the prices of XRP and ADA even higher.

XRP and ADA are currently two of the top 10 cryptocurrencies, with market caps of almost $28 billion and $14 billion, respectively. While their prices have been fluctuating, Santiment's analytics team believes that the heavy shorting activity could be a sign of an impending price increase. In the past week, XRP's price has risen by 11% and then fallen by 8%, and it is currently trading sideways. ADA, on the other hand, experienced a sudden 10% decline, but has since recovered by 6%.

The increase in short selling of XRP and ADA could be a sign that traders are anticipating a downtrend, but Santiment believes that this could be a good sign for "patient bulls." Historically, heavy shorting activity has been followed by a rebound, and if this happens, the prices of XRP and ADA could rise even higher. The low MVRV ratio of these two cryptocurrencies also suggests that they are undervalued, which could attract buyers and push their prices up.

The recent increase in open interest in XRP futures also suggests that investors are expecting the price to rise, and the heavy shorting activity could be the catalyst for this increase. If the prices of XRP and ADA do rise, it could be a good opportunity for traders who are looking to buy low and sell high.

In conclusion, the heavy shorting activity of XRP and ADA might seem like a negative sign, but it could actually be a good omen for these two cryptocurrencies. If the prices do rise, it could be a good opportunity for traders to make a profit, and it could also be a sign that the market is recovering from its recent downturn.