XRP and Bitcoin Show Low Social Media Sentiment Despite Price Surge
Data indicates that social media users exhibit low sentiment towards Bitcoin, XRP, and other top cryptocurrencies despite a market-wide surge, which may signal bullish potential for their prices.
Positive Sentiment vs. Negative Sentiment Ratio Remains Low for Top Coins
According to on-chain analytics firm Santiment, the sentiment surrounding digital assets has been low recently, even for coins with significant price increases.
The relevant indicator is the Positive Sentiment vs. Negative Sentiment Ratio, which compares positive and negative comments about an asset made by social media users.
This metric aggregates data from major platforms like X, Telegram, Reddit, and 4Chan, analyzing posts through a machine-learning model to classify sentiments as positive or negative.
A positive value indicates that positive sentiment outweighs negative sentiment, while a negative value signals a bearish mentality on social media.
The following chart illustrates 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).
The chart shows that the Positive Sentiment vs. Negative Sentiment Ratio remains nearly neutral for these cryptocurrencies, indicating a lack of strong market leanings.
This observation is notable given that XRP, Cardano, and Stellar have experienced substantial price increases. Typically, positive sentiment spikes during such rallies, as seen with Bitcoin after Donald Trump won the US Presidential Elections last month.
Historically, digital assets often move contrary to crowd expectations. A price correction might be likely if bullish sentiment becomes excessively strong.
The absence of euphoria among XRP and other investors, despite price surges, suggests potential for continued upward movement. Monitoring the Positive Sentiment vs. Negative Sentiment Ratio is advisable, as social media sentiment can shift rapidly, especially with significant news. An increase in this indicator could signal bearish trends for the market.
XRP Price
As of now, XRP is priced at approximately $2.58, reflecting an increase of nearly 17% over the past week.
