In a tweet, the firm revealed that cryptocurrency traders have, on social media, started taking a bearish stance on these four altcoins, at a time in which the price of bitcoin started testing the $40,000 mark while altcoins lagged behind.
Per Santiment, when social sentiment turns negative history suggests it’s time to “scoop up more assets,” suggesting that fear in the markets could be a sign the bottom is in.
📊 With the #altcoin downturn continuing, sentiment toward top caps like $ETH, $XRP, $ADA, & $DOT have all turned negative. Historically, crowd fear is the time to scoop up more assets. In our weekly report, we touch on this, on-chain activities, and more. https://t.co/6wfWmOLSPL pic.twitter.com/GyNm5inkXf— Santiment (@santimentfeed) June 13, 2021
As the Daily Hodl reports, Santiment has revealed that it measures social sentiment through a machine learning model that tracks a large dataset of over one million tweets. It is, however, worth noting that sentiment on social media may not necessarily mean users are moving their funds accordingly.
Santiment has also revealed that BTC and ETH have been seeing lower supply ratios on cryptocurrency exchanges compared to levels seen last month when crypto markets crash, which to the firm means “traders can be encouraged that this indicates less likelihood of further major selloffs.”
The firm also revealed on social media that Chainlink (LINK) holders have seen the price of the cryptocurrency drop over 50% from its all-time high, and that the “previous times that LINK trader returns dropped this low in a 30-day span, there were major bounces that followed.”
Earlier this month, Santiment also revealed bitcoin whales have been buying bitcoin ever since its price dropped below the $40,000 mark last month and have so far accumulated nearly $2 billion. In total, bitcoin whales added around 50,000 BTC to their wallets.