Recent data reveals a bullish sentiment surrounding XRP and Bitcoin, which could paradoxically negatively impact their prices. The analytics firm Santiment has observed that top cryptocurrencies are currently met with investor optimism. The key metric here is the “Weighted Sentiment,” an indicator that measures net sentiment on social media platforms.
The “weighted” aspect of this indicator means it factors in both sentiment balance and the volume of social media discussions. This adjustment ensures that the sentiment value accurately portrays market conditions, avoiding biases that could stem from low traffic periods.
The metric registers a spike only when both the sentiment is significantly biased towards one direction and there is a substantial volume of social media activity. Positive spikes in Weighted Sentiment reflect a bullish market outlook while negative spikes indicate a bearish sentiment. Values near zero suggest either insufficient social media discussions or neutral sentiment from users.
Recent trends show that Bitcoin, XRP, Solana, and Ethereum have all seen their Weighted Sentiment spike into positive territory, and this bullish sentiment has persisted despite the latest market downturn. Specifically, Bitcoin and XRP have reached sentiment levels not seen in 17 months and 14 months, respectively.
Conversely, BNB is an exception with its sentiment in negative territory. Although this indicates a slightly fearful investor outlook, it could be beneficial for BNB as markets often move contrary to popular expectations. Therefore, the strong positive sentiment around Bitcoin and XRP might actually be bearish for their prices.
Over the past 24 hours, XRP has fallen by 6%, bringing its price down to $0.57. This decline continues a recent trend of price drops for the cryptocurrency.
