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Data shows that social media sentiment around Dogecoin and Solana has seen a significant improvement following the market turnaround.
Social media is now bullish on Dogecoin, Solana, and Cardano
In new mail On X, analytics firm Santiment discussed the sentiment that social media traders currently have towards various major assets in the cryptocurrency sector. The relevant metric here is “positive/negative sentiment”, which, as the name suggests, tells us how bullish and bearish sentiment relating to a particular asset compares on major social media platforms.
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This indicator works by putting the posts/comments/messages on the platforms through a machine learning model to separate the positive from the negative. The ratio of these numbers is then taken to calculate the net position around the currency. When the positive/negative sentiment value is greater than zero, it means that bullish shares outweigh negative shares. On the other hand, its presence below the mark means that investors as a whole have negative feelings.
Now, here is a chart showing the trend in the indicator for six major coins: Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Dogecoin (DOGE), Solana (SOL), and Cardano (ADA):
As shown in the chart above, positive/negative sentiment has been increasing for Solana, Dogecoin, and Cardano recently, indicating improving sentiment around the asset. Of these, traders are the most positive towards SOL, as its bullish comments are about six times as many as bearish comments. The scale value is approximately 3 for ADA and 2 for DOGE.
The improvement in sentiment for Dogecoin and others came after a sector-wide price recovery. Interestingly, although the bull run made investors more bullish on these currencies, it failed to do so in the case of Bitcoin, Ethereum, and Ripple, which are the top three currencies by market capitalization.
The index is located near the neutral zero level for these assets, which means that there are almost as many positive entries as negative ones. However, this fact may not be bad for Bitcoin and the cryptocurrency market.
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Historically, digital assets tend to show movements in the opposite direction than most expect. This means that an excessively bullish rally can lead to tops, while an extremely bearish rally can lead to bottoms.
Thus, the hype around Dogecoin, Solana, and Cardano may work to the detriment of their prices, while Bitcoin, Ethereum, and Ripple may have upside room before they reach the top.
Doji price
At the time of writing, Dogecoin is trading around $0.352, up more than 2% over the past week.
Featured image from Dall-E, Santiment.net, chart from TradingView.com