Crypto analytics platform Santiment says a key factor is increasing the chances of digital assets seeing a recovery.
In a new thread on social media platform observed in the fourth quarter of last year.
“Crypto has been a slight disappointment for traders over the past week, and we have seen higher than usual mentions of selling interest. Just as we saw throughout the fourth quarter bull rally, when the crowd starts to get too bearish, higher prices become much more likely.
Santiment’s chart shows that mentions of selling digital assets on social media peaked on December 4, before the markets exploded. It also shows a spike in social media sell mentions on January 8, potentially foreshadowing another market-wide rally.
Santiment goes on to note that the growing number of crypto wallets tied to major assets such as Bitcoin (BTC), Ethereum (ETH), XRP, Cardano (ADA), and Dogecoin (DOGE) is also a good sign.
“BTC: +102,000 wallets.
ETH: +645,000 wallets.
XRP: +58,000 wallets.
ADA: +2,800 wallets.
DOGE: +29,000 wallets.
LINK: -3,300 wallets.
If portfolios grow quickly, the community is comfortable with the project in the long term. If portfolios are falling, there may be excess FUD (fear, uncertainty, and doubt) that indicates a buying opportunity (against the panicked crowd).
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Featured image: Shutterstock/Troyan
