Data shows social media users have been showing a negative sentiment towards XRP, Dogecoin, and Shiba Inu after their plunges in the past day.
FUD Has Engulfed Traders Towards These Altcoins After The Latest Crash
According to data from the analytics firm , the sentiment around XRP (XRP), Dogecoin (DOGE), and Shiba Inu (SHIB) has seen a significant drop recently.
The indicator of interest here is the “Weighted Sentiment,” which derives its value from two other metrics: Sentiment Balance and Social Volume. The first of these, the Sentiment Balance, goes through posts/threads/messages related to a specific cryptocurrency on the major social media platforms and puts them through a machine-learning model.
This model is able to identify and separate between negative and positive posts. The Sentiment Balance then takes the difference of these posts to find a net sentiment for the market.
The other relevant indicator here, the Social Volume, basically keeps track of the degree of discussion that a given asset is receiving on social media. The metric’s value represents the unique number of posts that are making at least one mention of the coin.
While the Sentiment Balance on its own does tell us about what the majority sentiment on social media currently is, it doesn’t quite contain information about how many users actually share this sentiment.
Activity on these platforms can fluctuate and sometimes only a few posts around the given cryptocurrency may pop up. Even if all of these posts are bullish, it’s hard to say whether they represent what the entirety of the market thinks.
The Weighted Sentiment remedies this issue by taking the Sentiment Balance and weighing it against the Social Volume. With this adjustment, the indicator only reflects an overwhelming dominance in either direction when not only does the net sentiment have a high magnitude, but also a large amount of posts are circulating around the asset.
Now, here is a chart that shows the recent trend in this indicator for three altcoins: XRP, DOGE, and SHIB.
The value of the metric seems to have been negative for all of these assets recently | Source:
As displayed in the above graph, the Weighted Sentiment has recently plunged into the negative territory for all three of XRP, Dogecoin, and Shiba Inu. This decline in the indicator has come as the prices of these assets have gone through a drawdown.
Naturally, these negative values imply the traders on social media have become bearish towards these assets. This FUD, however, can actually turn out to be a boon for the coins.
Historically, cryptocurrencies have tended to move contrary to the expectations of the majority. As such, with the Weighted Sentiment at negative levels, XRP and others could be close to hitting a bottom.
“Patient traders who have been waiting for the crowd to give up on these large cap altcoins may finally have their buy opportunity with FOMO at a 2024 low,” notes Santiment.
XRP Price
XRP has seen its price drop to $0.49 after witnessing a plunge of 6% over the past couple of weeks.
Looks like the price of the coin has registered a drop recently | Source:
Featured image from Shutterstock.com, Santiment.net, chart from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
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