Santiment has revealed that certain altcoins, despite facing significant FUD (Fear, Uncertainty, and Doubt), could experience a surge in their prices, likening it to providing "rocket fuel" for their potential rally.

Current Shorting Activity on Binance

Based on data from Santiment, Bitcoin Cash (BCH) and Loopring (LRC) are among the altcoins currently experiencing shorting activity in the futures market on the cryptocurrency exchange Binance.

The funding rate, which indicates the periodic fee that futures contract holders pay each other, has been consistently negative for both of these altcoins in recent times, suggesting a dominance of short positions on the platform and a prevailing sense of FUD among traders regarding these assets.

Despite this bearish sentiment, such conditions could actually contribute to a price increase for these altcoins. Both BCH and LRC have exhibited signs of a potential turnaround, and if the market recovery continues, it could lead to the liquidation of short positions, serving as a catalyst for upward price movement.

Bitcoin Cash, in particular, is experiencing heightened FUD on Binance, and with the asset showing signs of an upward trend, there is a possibility of a mass liquidation event known as a "squeeze." Squeezes typically result in sharp price movements, and considering the current funding rate and emerging price action, BCH could witness a significant upward surge.

Altcoin Performance Compared to Bitcoin

In a separate analysis, Glassnode has assessed the performance of various altcoin segments relative to Bitcoin. The DeFi Index, GameFi Index, Scaling Index, and Staking Index have all seen an uptick since the approval of the Bitcoin spot ETF earlier in the month.

This indicates a growing appetite for altcoins among market participants, even as Bitcoin experiences selling pressure following the ETF approval news.

BCH Price Movement

Following its recent turnaround, Bitcoin Cash has regained ground and is now trading around the $238 level.