As a seasoned crypto investor with a keen interest in market sentiment and trends, I find the recent data on XRP, Dogecoin, and Shiba Inu intriguing. The plunge in their prices over the past day has certainly sparked negative sentiments among traders on social media. According to Santiment’s analysis, the Weighted Sentiment for these altcoins has dropped into the negative territory.
The data indicates that social media has been abuzz with expressed negativity from users regarding XRP, Dogecoin, and Shiba Inu following their recent significant declines.
FUD Has Engulfed Traders Towards These Altcoins After The Latest Crash
Based on data analyzed by Santiment, I’ve observed a notable decline in sentiment surrounding XRP (XRP), Dogecoin (DOGE), and Shiba Inu (SHIB).
In this context, the significant measure is referred to as “Weighted Sentiment.” This metric is calculated based on two other components: Sentiment Balance and Social Volume. The initial component, Sentiment Balance, analyzes posts, threads, or messages linked to a particular cryptocurrency on major social media outlets. It then applies machine learning models to assess the emotional tone behind these communications.
As a researcher studying social media data, I design a model that distinguishes between negatively and positively toned posts. Subsequently, I calculate the Sentiment Balance by subtracting the number of negative posts from the positive ones, yielding the net sentiment for the market.
Social Volume is another significant indicator, which monitors the level of conversation surrounding a particular asset on social media platforms. The figure denotes the distinct count of posts containing at least one reference to the cryptocurrency.
Although the Sentiment Balance gives us insights into the prevailing emotion among social media users at present, it fails to reveal the number of individuals who hold this particular view.
The level of engagement on these cryptocurrency platforms can vary, and you might find only a handful of relevant posts about a specific digital currency at any given time. While it’s possible that all of these posts express optimistic views, it may be challenging to determine if this sentiment is shared by the broader market.
The Weighted Sentiment addresses this concern by comparing the Sentiment Balance to the Social Volume’s magnitude. By incorporating this adjustment, the indicator will only signal significant dominance in sentiment when both the net sentiment holds a substantial strength and there is a considerable volume of related social media posts surrounding the asset.
The Weighted Sentiment for XRP, Dogecoin, and Shiba Inu, as shown on the graph, has dipped into negative territory lately. This shift in sentiment coincides with a price decline for these assets.
In simple terms, the pessimistic views expressed by traders on social media about these assets suggest they have grown cautious or even bearish towards them. However, the fear, uncertainty, and doubt (FUD) that arises from such sentiment can unexpectedly benefit the coins.
From a historical perspective, I’ve observed that the market sentiment towards cryptocurrencies often runs counter to the prevailing public opinion. Given the current negative Weighted Sentiment, it’s plausible that XRP and other digital assets might soon reach their lowest points.
As a long-term crypto investor, I’ve been keeping a close eye on the large cap altcoins that have been heavily sold off recently. According to Santiment’s analysis, these coins may now be presenting an excellent buying opportunity for patient traders like myself. With fear and panic driving the market, it’s possible that we’ve reached the 2024 low for FOMO (Fear of Missing Out) in these coins. This could mean that those who have waited for the crowd to give up may finally be able to enter the market at a potentially profitable price point.
XRP Price
XRP has seen its price drop to $0.49 after witnessing a plunge of 6% over the past couple of weeks.
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2024-06-18 20:10