XRP, Bitcoin See Lack Of Euphoria: Why This Is Bullish
While Bitcoin, XRP and other top cryptocurrencies are surging market-wide, social media users are not optimistic, data shows, a sign that could be positive for their prices.
Positive Sentiment vs. Negative Sentiment Top coins still have a lower ratio of negative sentiment
According to data from on-chain analytics companies saintSentiment surrounding digital assets has been low lately, even for those coins that have experienced historic gains.
The correlation metric here is “Positive Emotions to Negative Emotions Negative Emotions Ratio”, as the name suggests, tells us how current positive and negative reviews of a specific asset compare among social media users.
Data for this indicator comes from major social media platforms such as X, Telegram, Reddit and 4Chan. It puts these posts/messages/threads containing related term mentions through a machine learning model to differentiate between positive and negative posts/messages/threads and find the difference in their counts.
When the value of this metric is positive, it means that there are more posts with positive sentiment than posts with negative sentiment. Negativity, on the other hand, means that a bearish mentality dominates social media.
Here is a chart showing recent trends in positive versus negative sentiment. Negative sentiment ratio for five assets: Bitcoin (BTC), Ripple (XRP), Ethereum (ETH), Cardano (ADA), and Stellar Lumens (XLM).
As shown in the figure above, positive emotions are compared with negative emotions. Recently, the negative sentiment ratio for all these cryptocurrencies has remained almost neutral. This shows that the market is not tilting in one direction.
This trend is interesting considering the massive price increases of XRP, Cardano, and Stellar. Generally speaking, when such rallies occur, positive comments tend to surge, as they did for Bitcoin early last month Donald Trump Win the U.S. presidential election.
Historically, digital assets have often moved in the opposite direction to popular expectations. This means that whenever bullish sentiment becomes too great, prices are likely to correct.
taking into account Euphoria Despite the price surge, it has yet to overtake XRP and other investors may still have room for their gains to continue.
Positive Sentiment vs. Negative Sentiment However, the negative sentiment ratio is still worth keeping an eye on in the near future, as social media sentiment can sometimes shift quickly, especially when some breaking news comes out. A spike in this indicator is naturally a bearish sign for the market.
Ripple price
As of this writing, XRP is trading around $2.58, up nearly 17% in the past seven days.
