Evidence indicates that social media users are not overly enthusiastic about Bitcoin, XRP, and several other leading cryptocurrencies, even amidst the market-wide uptrend, which may suggest a bullish outlook for their values.
Ratio of Positive Sentiment to Negative Sentiment Remains Low For Major Coins
According to information from the on-chain analytics company Santiment, feelings surrounding digital currencies have been muted recently, even for those that have experienced remarkable gains.
The key metric in this scenario is the “Positive Sentiment Vs. Negative Sentiment Ratio,” which, as indicated by its title, provides insight into how the positive and negative remarks about a particular asset are currently assessed by social media contributors.
This metric aggregates data from leading social media outlets such as X, Telegram, Reddit, and 4Chan. It processes these posts/messages/threads that mention the relevant term through a machine-learning model to distinguish between affirmative and adverse comments, further uncovering the difference in their quantities.
A positive value for this indicator implies that posts reflecting a positive sentiment surpass those indicating a negative sentiment. Conversely, a negative value suggests that a bearish outlook prevails on social media.
Below is a chart illustrating the recent trend of the Positive Sentiment Vs. Negative Sentiment Ratio for five cryptocurrencies: Bitcoin (BTC), XRP (XRP), Ethereum (ETH), Cardano (ADA), and Stellar (XLM).
As shown in the chart above, the Positive Sentiment Vs. Negative Sentiment Ratio has remained relatively stable for all these digital currencies lately. This indicates that the market isn’t strongly favoring one direction or another.
This trend is notable, especially considering that XRP, Cardano, and Stellar have experienced significant price increases. Typically, positive comments surge in instances of such rallies, as seen with Bitcoin early last month when Donald Trump triumphed in the US Presidential Elections.
Historically, digital currencies have frequently demonstrated movements contrary to popular expectation. This suggests that a price adjustment could become likely whenever bullish sentiment escalates excessively.
Given that exuberance hasn’t overwhelmed the investors in XRP and others despite the price increases, it’s plausible that their momentum may still have further to go.
The Positive Sentiment Vs. Negative Sentiment Ratio will certainly be worth monitoring in the near future, as social media sentiment can occasionally shift rapidly, particularly if significant news breaks. A rise in the indicator would unavoidably signal a bearish trend for the market.
XRP Valuation
As of the time of writing, XRP is hovering around $2.58, reflecting an increase of nearly 17% over the past week.
