Social media turns bullish on Dogecoin, Solana as market rebounds

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This article is also available in Spanish.

Data shows that social media sentiment around Dogecoin and Solana has improved significantly following the market turnaround.

Social media is now bullish on Dogecoin, Solana, and Cardano

In the modern one post on X, analyst firm Santiment discussed how social media traders are currently feeling towards various leading assets in the cryptocurrency sector. The metric that matters here is “positive/negative sentiment,” which, as the name suggests, tells us how bullish and bearish sentiment about an asset compares on major social media platforms.

This metric works by putting the posts/comments/messages present on the platforms through a machine learning model to separate the posts/comments/messages between positive and negative ones. The net situation around the coin is then calculated based on the ratio of these counts. When positive/negative sentiment has a value greater than zero, it means that bullish posts outweigh negative ones. On the other hand, the fact that it is below par means that investors as a whole have negative sentiment.

Here is a chart showing the trend of the indicator for the six most significant coins: Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Dogecoin (DOGE), Solana (SOL), and Cardano (ADA):

It appears that the metric trend was not consistent across these resources | Source: Santiment on X

As shown in the chart above, positive/negative sentiment has seen an augment recently for Solana, Dogecoin, and Cardano, suggesting that sentiment around the asset has improved. Of these, investors are most positive about SOL, with its bullish comments about six times that of bearish ones. The metric has a value of approximately 3 for ADA and 2 for DOGE.

The improved sentiment for Dogecoin and other companies followed a rebound in prices across the sector. Interestingly, while the rally has made investors more bullish about these coins, it has failed to do so for Bitcoin, Ethereum, and XRP, the three cryptocurrencies with the largest market capitalizations.

The index is close to the neutral zero level for these assets, which means that there are about as many positive positions as negative ones. However, this fact may not actually be bad for BTC and the cryptocurrency market.

Related reading: Analyst says the Bitcoin fun will begin when this turnaround happens

Historically, digital assets have tended to move in the opposite direction to most expectations. This means that an overly bullish crowd can lead to highs, while an overly bearish crowd can result in lows.

So the hype around Dogecoin, Solana, and Cardano may be working to the detriment of their prices, while Bitcoin, Ethereum, and XRP may have a chance to rally before they peak.

DOGA Price

As of this writing, Dogecoin is hovering around $0.352, up over 2% over the past week.

Dogecoin price chart
The price of memecoin seems to have increased over the last day | Source: DOGEUSDT on TradingView

Featured image from Dall-E, Santiment.net, chart from TradingView.com

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