Data shows the social media sentiment toward XRP has surged to a 5-week high even as mood around Bitcoin and Ethereum remains dull.
XRP Positive/Negative Sentiment Has Shot Up Recently
In a new post on X, analytics firm Santiment has talked about how XRP, Bitcoin, and Ethereum currently compare in terms of the Positive/Negative Sentiment. This indicator tells us about whether an asset is observing more bullish or bearish comments on the major social media platforms.
The metric works by filtering social media posts/threads/messages for terms related to the cryptocurrency and putting them through a machine-learning model that separates between positive and negative sentiments. It then counts up the number of posts in each category and determines the ratio between them.
When the value of the Positive/Negative Sentiment is greater than 1, it means bullish comments outnumber the bearish ones. On the other hand, the indicator being under this level could indicate the dominance of a negative sentiment among social media users.
Now, here is the chart shared by Santiment that shows the trend in the Positive/Negative Sentiment for three top cryptocurrencies: Bitcoin, XRP, and Ethereum.
As displayed in the above graph, Bitcoin and Ethereum have both seen the Positive/Negative Sentiment decline to near-neutral levels recently. Bullish and bearish comments are almost exactly canceling out for the former with the metric sitting at 1.05, while the latter is seeing a slight dominance of positive sentiment with a value of 1.4.
The analytics firm noted:
Crypto markets have struggled to maintain momentum, and social data indicates there are far less bullish comments toward Bitcoin and Ethereum compared to last week.
Meanwhile, the indicator has taken a completely different route for XRP. From the chart, it’s visible that the Positive/Negative Sentiment has recently witnessed a sharp rise for the digital asset ranked fourth by market cap.
XRP has also struggled like the rest of the market recently, so what’s behind the divergence? According to Santiment, it’s likely to lie in the recent partnership expansion announcements.
The wave of bullish comments over the last couple of days has pushed the Positive/Negative Sentiment to 2.35, the highest level in five weeks. If past pattern is to go by, though, this excitement around the asset may not necessarily translate to the cryptocurrency’s price.
Generally, digital asset markets tend to move in the direction that goes contrary to the expectations of the majority. In that view, Bitcoin and Ethereum with their relatively dull sentiments may be better positioned for a rebound than XRP.
XRP Price
At the time of writing, XRP is floating around $1.39, up around 5% in the last seven days.
Credit: Source link
