Data shows that sentiment around XRP and Bitcoin is currently very bullish, which may actually be to the detriment of their prices.
XRP and Bitcoin are among the coins experiencing positive sentiment at the moment
According to data from the analytics company saintAt the moment, large-cap cryptocurrencies are being watched by bullish investors. The indicator of interest here is “Weighted Sentiment,” which basically tells us the net sentiment around an asset currently on social media platforms.
The word “weighted” in its name comes from the fact that it weighs the sentiment in the market (sentiment scale) against the amount of discussion happening on social media (social volume).
Because of this feature, the value of this indicator only spikes when the audience is strongly biased towards one side as determined by Santiment’s machine learning model, but also when there are a large number of posts/topics/messages on social media expressing such sentiments.
The advantage of this modification is that the indicator is better able to depict the actual situation in the market, because it does not rely on the opinion of a few users (as is the case in periods when traffic is low).
Naturally, positive spikes in the Sentiment Weighted Index indicate that investors are currently bullish, while negative spikes indicate a bearish market. Values around zero indicate either that there is not enough discussion on social media or that users as a whole are simply neutral.
Now, here is a chart showing the trend in this index for the five largest assets in the sector, Bitcoin (BTC), Ethereum (ETH), BNB (BNB), XRP (XRP), and Solana (SOL), over the past few months:
As shown in the chart above, Bitcoin, XRP, Solana, and Ethereum have all seen their sentiments rise into positive territory recently, and these levels have held so far into the latest market decline.
This means that social media users are currently positive about these currencies. Bitcoin and XRP stand out in particular in this regard, with their indexes hitting 17-month and 14-month highs, respectively.
BNB is the only cryptocurrency among these that has sentiment likely in negative territory, although investors are currently holding only a slight sense of fear. However, this negative sentiment may actually play in BNB’s favor, as markets have historically been more likely to move in the opposite direction than the public expects. Naturally, this means that the overwhelmingly positive sentiment around Bitcoin and XRP could instead be bearish for their prices.
XRP price
XRP extended its decline over the past 24 hours with a 6% drop, bringing its price to $0.57.