XRP Social Sentiment Still Bullish While Bitcoin Mood Sours
Data shows social media users are still optimistic about XRP even as sentiment around Bitcoin and Ethereum has declined alongside the market downturn. XRP Positive/Negative Sentiment Is Still At A Notable Level In a new post on X, analytics firm Santiment has talked about how social media sentiment has compared across Bitcoin, Ethereum, and XRP during the latest market decline. The indicator of relevance here is the “Positive/Negative Sentiment,” which tells us about how positive comments related to a given asset stack up against the negative ones on the major social media platforms. Related Reading: Social Media Now Talking Sub-$60,000 Bitcoin Prices As Fear Rises The metric works by assembling posts/comments/messages containing mentions of the asset and feeding them into a machine-learning model to classify them as bearish or bullish. It then counts up the number of posts in each category and finds their ratio. When the value of this ratio is greater than 1, it means positive comments related to the cryptocurrency outweigh the negative ones. On the other hand, the indicator being under this threshold suggests the dominance of bearish sentiment. Now, here is the chart shared by Santiment that shows the trend in the Positive/Negative Sentiment for Bitcoin, Ethereum, and XRP over the past month: As is visible in the above graph, the Positive/Negative Sentiment plunged across the three cryptocurrencies at the end of January as prices crashed. The indicator’s value slipped below 1 for each of them during this drop, indicating traders became bearish on the market as a whole. As prices have continued to slide down since then, however, a shift has occurred in the Positive/Negative Sentiment, with its value separating for the three. The chart shows that the metric’s latest value for XRP is nearly 2.2, indicating that social media users have become more optimistic about the coin. Meanwhile, the indicator continues to be inside the bearish zone for Bitcoin with a value of 0.79. Ethereum has seen some improvement in the metric to a neutral value of 1, but compared to the normal for January, this level could still be considered to reflect a bearish sentiment among the retail social media crowd. Related Reading: Bitcoin MVRV Z-Score Compresses To Levels Last Seen Near $29,000 Historically, digital asset markets have often tended to move in a direction contrary to the expectations of retail traders. This means that an extreme amount of fear can help prices rebound, while overhype can lead to tops. “There remains a strong argument for a short-term relief rally as long as the small trader crowd continues to show disbelief toward cryptocurrency as a whole,” explained the analytics firm. Given that trader sentiment has diverged for XRP recently, however, it only remains to be seen how the sector will develop in the near future. XRP Price At the time of writing, XRP is floating around $1.35, down more than 27% over the last seven days. Featured image from Dall-E, chart from TradingView.com
