Altcoins
Major Altcoin traders are bullish despite price stagnation
Despite recent price stagnation, cryptocurrency traders remain bullish on several major altcoins. Analysis from Santiment, a leading crypto market intelligence platform, reveals intriguing sentiment trends.
According to Brian Quinlivan, chief analyst at Santiment, the data measures ratios of positive and negative comments, providing valuable insights into market sentiment.
Altcoin traders remain bullish
Solana, for example, shows significantly high bullish sentiment with a positive-to-negative comments ratio of 3.03:1. This optimism persists even as Ethereum, its main competitor, gains more attention.
Cryptocurrency traders continue to express confidence in Solana’s potential for another significant rally, despite its recent lackluster price performance.
Solana market sentiment. Source: Most Holy
Similarly, XRP showed “lukewarm sentiment” with a positive/negative ratio of 1.62:1. This indicates that traders have become a bit impatient with its performance, just like with Cardano.
While this ratio was lower at the beginning of the year, Quinlivan says the reduced volume of discussions indicates a decline in interest over time.
To know more: 12 Best Altcoin Exchanges for Cryptocurrency Trading in June 2024
Meanwhile, Dogecoin, the largest memetic currency by market capitalization, it maintains a positive/negative ratio of 2.06:1. Known for his volatilityDogecoin sentiment often reflects the general attitude towards meme coins rather than its own fundamentals.
Despite slight price increases, the overall positive sentiment suggests continued interest from altcoin traders.
In case of Shiba Inubehind Dogecoin as the second largest memetic currency, there is a positive-negative ratio of 2.09:1. This sustained positive sentiment for seven weeks is notable, given the lack of rebound in the coin’s price since early March.
The recent passing of the real Shiba Inu, which inspired the coin, may have temporarily boosted sentiment.
Cardan presents another interesting case with strong bullish sentiment despite being one of the underperforming stocks in 2024. With a positive-to-negative ratio of 3.42:1, traders remain bullish on Cardano’s prospects, showing what could be considered false optimism.
According to Quinlivan, this discrepancy between sentiment and performance raises questions about future price movements.
To know more: What are the best Altcoins to invest in in June 2024?
Quinlivan points out the importance of monitoring these sentiment trends, as they can signal potential price highs or lows. High ratios of positive to negative comments often precede sentiment-driven price tops, while lower ratios can indicate bottoms.
“The higher the ratio of positive to negative comments, the more likely we are about to see a sentiment-driven price top. And on the other hand, a low ratio can cause a sentiment-driven bottom,” Quinlivan said.
In conclusion, despite price stagnation, traders remain optimistic about several altcoins. SolanaDogecoin and Shiba Inu, in particular, show strong positive sentiment, while XRP and Cardano show more moderate but still bullish outlooks.
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