Data shows social media users aren’t euphoric towards Bitcoin, XRP, and other top cryptocurrencies despite the market-wide surge, a sign that could be bullish for their prices.
Positive Sentiment Vs. Negative Sentiment Ratio Remains Low For Top Coins
According to data from the on-chain analytics firm , sentiment around digital assets has been low recently, even for the coins that have enjoyed historic runs.
The indicator of relevance here is the “Positive Sentiment Vs. Negative Sentiment Ratio,” which, as its name suggests, tells us about how the positive and negative comments about a given asset being made by social media users currently compare.
This metric sources data from major social media platforms like X, Telegram, Reddit, and 4Chan. It puts these posts/messages/threads containing mentions of the relevant term through a machine-learning model to differentiate between positive and negative ones, and finds the difference in their count.
When the value of this indicator is positive, it means the posts about a positive sentiment outweigh the ones containing a negative sentiment. On the other hand, being negative implies that a bearish mentality is dominant on social media.
Here is a chart showing the recent trend in the Positive Sentiment Vs. Negative Sentiment Ratio for five assets: Bitcoin (BTC), XRP (XRP), Ethereum (ETH), Cardano (ADA), and Stellar (XLM).
As displayed in the above graph, the Positive Sentiment Vs. Negative Sentiment Ratio has remained almost neutral for all these cryptocurrencies recently. This suggests the market isn’t leaning one way or the other.
The trend is interesting, considering XRP, Cardano, and Stellar have seen massive price surges. Generally, positive comments tend to spike when such rallies occur, like they did for Bitcoin early last month when Donald Trump won the US Presidential Elections.
Historically, digital assets have often shown moves opposite to what the crowd expects. This means that a price correction can become probable whenever bullish sentiment grows too big.
Considering that euphoria hasn’t overtaken the investors of XRP and others despite the price surges, it’s possible that their runs could still have room to continue.
The Positive Sentiment Vs. Negative Sentiment Ratio could still be to keep an eye on in the near future, however, as social media sentiment can sometimes flip very quickly, especially if some big news comes out. A spike in the indicator would naturally be a bearish sign for the market.
XRP Price
At the time of writing, XRP is floating around $2.58, up almost 17% over the past seven days.