Data suggests that market sentiment around Solana (SOL) and Bitcoin (BTC) is currently negative, which could benefit their prices.
Crowds skeptical about Solana and Bitcoin while Ethereum gets all the hype
As on-chain analytics company Santiment explained in a mail On X, investors are not yet bullish on Bitcoin and Solana despite their recent rally.
The relevant indicator here is “weighted sentiment,” which is based on two other metrics: sentiment balance and social volume. The first measures net sentiment among cryptocurrency traders at the moment.
This indicator works by analyzing social media data and applying a machine learning model to differentiate between negative and positive posts about an asset. The difference between the two is then used to determine which side is currently dominant.
The second important metric here, social volume, tracks the unique number of posts/messages/topics on social media platforms discussing a particular asset. Basically, its value represents the degree of discussion the coin receives from social media users.
While the Sentiment Balance provides information about net market sentiment, it is not always useful, because it does not say anything about how many users actually share that opinion.
Weighted sentiment fixes this problem by balancing sentiment balance with social size. This means that the value of this indicator only rises in either direction when multiple publications discuss the asset, most of which are positive or negative about the coin.
Here is a chart showing the trend in weighted sentiment for three of the top cryptocurrencies in this sector: Bitcoin, Ethereum, and Solana.
The value of the metric appears to have been quite positive for ETH recently | Source: Santiment on X
As shown in the chart above, the weighted sentiment towards Bitcoin and Solana has been negative recently. Interestingly, these red levels persisted even though their prices saw an upside wind.
On the other hand, Ethereum has seen a significant positive spike in the indicator, which means that many bullish posts related to the coin are spreading on social media.
This optimism behind the cryptocurrency is due to positive news about the prospects of ETH being approved for exchange-traded funds (ETFs).
Historically, market euphoria has been a bearish sign, as price generally tends to move against majority expectations. Likewise, investors' concerns were a positive sign that new highs would begin.
As such, at least based on sentiment, Bitcoin and Solana may be more likely to see a rally than Ethereum, which may be extremely hot.
Sol price
With gains of over 19% over the past week, Solana is among the best performing coins by market cap. At present, SOL is trading at around $177.
Looks like the price of the coin has shot up over the last few days | Source: SOLUSD on TradingView
Featured image from iStock.com, Santiment.net, chart from TradingView.com