As a seasoned crypto investor with a keen interest in market sentiment and on-chain data, I find the current negative weighted sentiment towards Bitcoin and Solana intriguing. Although their prices have been bullish lately, social media chatter and trader sentiment remain bearish. This situation could potentially lead to further price increases as investors buy into undervalued assets.
The current market feeling towards Solana (SOL) and Bitcoin (BTC) appears to be pessimistic based on available data, which might potentially lead to price growth for both assets.
Crowd Bearish About Solana & Bitcoin While Ethereum Gets All The Hype
According to a recent analysis by on-chain data provider Santiment in post X, investors’ bullish sentiment towards Bitcoin and Solana has yet to pick up significantly despite their recent price increases.
The relevant indicator here is the “Weighted Sentiment,” which is based on two other metrics: Sentiment Balance and Social Volume. The former measures the net sentiment among cryptocurrency traders right now.
The tool identifies trends in social media discussions regarding an asset by employing a machine learning algorithm. It distinguishes between unfavorable and favorable posts, and the disparity between these categories indicates the prevailing sentiment.
As an analyst, I would describe the second metric, Social Volume, as follows: This metric measures the distinct count of messages or discussions about a specific asset across various social media channels. In simpler terms, it signifies the level of buzz or chatter surrounding the coin among social media users.
Although the Sentiment Balance gives insight into the overall sentiment trend in the market, it falls short of revealing the number of individuals holding such opinions.
The Weighted Sentiment adjusts the Sentiment Score based on the significance of the public sentiment towards an asset, in relation to its social media buzz. This signifies that a significant change in the indicator’s value occurs when there is a large volume of discussions surrounding the asset and a majority of these posts convey either strongly positive or negative sentiments regarding the coin.
As a researcher examining the sentiment trends of three leading cryptocurrencies – Bitcoin, Ethereum, and Solana – I have prepared this chart to illustrate the Weighted Ssentiment changes over time.
From my analysis of the graph before you, I’ve noticed that the Weighted Sentiment for Bitcoin and Solana has taken on a negative tone in recent times. Remarkably, this pessimistic outlook has remained even as their prices have shown signs of bullish trends.
Instead of “Ethereum, on the other hand, has seen a significant increase in this indicator, suggesting that numerous optimistic messages about the cryptocurrency are gaining traction on social media,” you could also say “There’s been a noticeable rise in positive chatter about Ethereum on social media, which is reflected in the uptick of this indicator.”
As a cryptocurrency analyst, I’ve noticed a surge in optimism within the community, and this confidence stems from recent encouraging signs regarding the potential approval of Ethereum-based exchange-traded funds (ETFs).
In the past, market excitement, characterized by widespread optimism and high expectations, has often led to bearish price movements. Conversely, investor fear, which can manifest as anxiety or panic selling, has historically been a bullish indicator, signaling potential new rises.
Based on public sentiment, Bitcoin and Solana could potentially experience growth more so than Ethereum, which some believe is becoming overheated.
SOL Price
As a researcher examining the cryptocurrency market, I’ve noticed that Solana (SOL) has shown remarkable growth over the past week, boasting gains exceeding 19%. Currently, its price hovers around $177.
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2024-05-22 21:11