XRP, Dogecoin, & Shiba Inu All See Negative Sentiment: Signal To Buy?
18 Junho 2024 - 2:00PM
NEWSBTC
Data shows social media users have been showing a negative
sentiment towards XRP, Dogecoin, and Shiba Inu after their plunges
in the past day. FUD Has Engulfed Traders Towards These Altcoins
After The Latest Crash According to data from the analytics firm
Santiment, the sentiment around XRP (XRP), Dogecoin (DOGE), and
Shiba Inu (SHIB) has seen a significant drop recently. The
indicator of interest here is the “Weighted Sentiment,” which
derives its value from two other metrics: Sentiment Balance and
Social Volume. The first of these, the Sentiment Balance, goes
through posts/threads/messages related to a specific cryptocurrency
on the major social media platforms and puts them through a
machine-learning model. Related Reading: Bitcoin Could Crash To
$60,000 If This Support Gets Lost: CryptoQuant Head This model is
able to identify and separate between negative and positive posts.
The Sentiment Balance then takes the difference of these posts to
find a net sentiment for the market. The other relevant indicator
here, the Social Volume, basically keeps track of the degree of
discussion that a given asset is receiving on social media. The
metric’s value represents the unique number of posts that are
making at least one mention of the coin. While the Sentiment
Balance on its own does tell us about what the majority sentiment
on social media currently is, it doesn’t quite contain information
about how many users actually share this sentiment. Activity on
these platforms can fluctuate and sometimes only a few posts around
the given cryptocurrency may pop up. Even if all of these posts are
bullish, it’s hard to say whether they represent what the entirety
of the market thinks. The Weighted Sentiment remedies this issue by
taking the Sentiment Balance and weighing it against the Social
Volume. With this adjustment, the indicator only reflects an
overwhelming dominance in either direction when not only does the
net sentiment have a high magnitude, but also a large amount of
posts are circulating around the asset. Now, here is a chart that
shows the recent trend in this indicator for three altcoins: XRP,
DOGE, and SHIB. As displayed in the above graph, the Weighted
Sentiment has recently plunged into the negative territory for all
three of XRP, Dogecoin, and Shiba Inu. This decline in the
indicator has come as the prices of these assets have gone through
a drawdown. Naturally, these negative values imply the traders on
social media have become bearish towards these assets. This FUD,
however, can actually turn out to be a boon for the coins.
Historically, cryptocurrencies have tended to move contrary to the
expectations of the majority. As such, with the Weighted Sentiment
at negative levels, XRP and others could be close to hitting a
bottom. Related Reading: Bitcoin Mining Cost At $86,700: Price To
Surpass This Soon? “Patient traders who have been waiting for the
crowd to give up on these large cap altcoins may finally have their
buy opportunity with FOMO at a 2024 low,” notes Santiment. XRP
Price XRP has seen its price drop to $0.49 after witnessing a
plunge of 6% over the past couple of weeks. Featured image from
Shutterstock.com, Santiment.net, chart from TradingView.com
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