XRP, Bitcoin See Lack Of Euphoria: Why This Is Bullish
04 Dezember 2024 - 6:00AM
NEWSBTC
Data shows social media users aren’t euphoric towards Bitcoin, XRP,
and other top cryptocurrencies despite the market-wide surge, a
sign that could be bullish for their prices. Positive Sentiment Vs.
Negative Sentiment Ratio Remains Low For Top Coins According to
data from the on-chain analytics firm Santiment, sentiment around
digital assets has been low recently, even for the coins that have
enjoyed historic runs. The indicator of relevance here is the
“Positive Sentiment Vs. Negative Sentiment Ratio,” which, as its
name suggests, tells us about how the positive and negative
comments about a given asset being made by social media users
currently compare. This metric sources data from major social media
platforms like X, Telegram, Reddit, and 4Chan. It puts these
posts/messages/threads containing mentions of the relevant term
through a machine-learning model to differentiate between positive
and negative ones, and finds the difference in their count. Related
Reading: Strong Bitcoin Rise “Expected Within 1-2 Months,” Quant
Explains Why When the value of this indicator is positive, it means
the posts about a positive sentiment outweigh the ones containing a
negative sentiment. On the other hand, being negative implies that
a bearish mentality is dominant on social media. Here is a chart
showing the recent trend in the Positive Sentiment Vs. Negative
Sentiment Ratio for five assets: Bitcoin (BTC), XRP (XRP), Ethereum
(ETH), Cardano (ADA), and Stellar (XLM). As displayed in the above
graph, the Positive Sentiment Vs. Negative Sentiment Ratio has
remained almost neutral for all these cryptocurrencies recently.
This suggests the market isn’t leaning one way or the other. The
trend is interesting, considering XRP, Cardano, and Stellar have
seen massive price surges. Generally, positive comments tend to
spike when such rallies occur, like they did for Bitcoin early last
month when Donald Trump won the US Presidential Elections.
Historically, digital assets have often shown moves opposite to
what the crowd expects. This means that a price correction can
become probable whenever bullish sentiment grows too big. Related
Reading: Dogecoin TD Sell Signal Goes Off, But Here’s Why Parabolic
Bull Run Can Still Continue Considering that euphoria hasn’t
overtaken the investors of XRP and others despite the price surges,
it’s possible that their runs could still have room to continue.
The Positive Sentiment Vs. Negative Sentiment Ratio could still be
to keep an eye on in the near future, however, as social media
sentiment can sometimes flip very quickly, especially if some big
news comes out. A spike in the indicator would naturally be a
bearish sign for the market. XRP Price At the time of writing, XRP
is floating around $2.58, up almost 17% over the past seven days.
Featured image from Dall-E, Santiment.net, chart from
TradingView.com
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