Top Altcoins Traders Are Bullish Despite Price Slowdown
Despite the recent price slowdown, crypto traders remain bullish on many popular altcoins. Analysis from Santiment, a leading crypto market intelligence platform, reveals some interesting trends.
According to Brian Quinlivan, Lead Analyst at Sentiment, the data measures positive and negative sentiment ratios, providing valuable insights into market sentiment.
Altcoins traders remain bullish
Solana, for example, showed remarkably high bullishness with a positive-to-negative feedback ratio of 3.03:1. This optimism will continue even as its main competitor, Ethereum, gains more attention.
Crypto traders continue to express confidence in Solana's potential for another significant rally despite the recent lack of price performance.
Similarly, XRP showed “warm sentiment” with a positive-to-negative ratio of 1.62:1. This suggests that traders, like Cardano, are somewhat impatient with its performance.
Although this ratio was low at the beginning of the year, Quinlivan said the drop in chat volume shows an increase over time.
Read more: 12 Best Altcoin Exchanges for Crypto Trading in June 2024
Meanwhile, Dogecoin, the largest by market cap, maintains a positive-to-negative ratio of 2.06:1. Known for its volatility, Dogecoin's sentiment often reflects the general attitude towards meme coins rather than its own fundamentals.
Despite the small price fluctuations, the overall positive sentiment suggests continued altcoin trading interest.
In Shiba Inu's case, following Dogecoin as the second largest meme coin, there is a positive-to-negative ratio of 2.09:1. The coin's lack of price improvement is noteworthy given the continued positive sentiment in the seven weeks since early March.
The recent passing of the real-life Shiba Inu that inspired the coin may have heightened the mood for the moment.
Cardano is one of the underperformers in 2024, but it presents another interesting case with high bullishness. With a positive-to-negative ratio of 3.42:1, traders are optimistic about Cardano's prospects, which can be considered false optimism.
According to Quinlivan, this discrepancy between sentiment and execution raises questions about future price movements.
Read more: Which are the best Altcoins to invest in June 2024?
Quinlivan emphasizes the importance of following these trends, because they indicate possible price tops or bottoms. High ratios of positive to negative reviews often precede sentiment-driven price spikes, while low ratios can indicate bottoms.
“The higher the ratio between positive and negative sentiment, the more likely we are to see a sentiment-driven price top. And at the other extreme, a low ratio can lead to a sentiment-driven bottom,” Quinlivan said.
In conclusion, despite the price slowdown, traders are optimistic about many altcoins. Solana, Dogecoin, and Shiba Inu, in particular, show strong positive sentiment, while XRP and Cardano show more aggressive but still bullish views.
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