According to a recent report by popular analysts Santiment, attitudes across social media are shifting for cryptocurrencies with the largest market caps, often moving contrary to crowd expectations.
The analysts explained that while some traders remain bullish on Bitcoin, scepticism towards altcoins suggests opportunities to invest in speculative assets. Conversely, euphoria around meme coins during bull runs may signal upcoming downturns for altcoins as the market tempers its enthusiasm.
Bitcoin and Ethereum: Still a Good Crypto Bets?
The report starts off with the two largest and most important cryptos: BTC and ETH.
The analysts write that sentiment toward Bitcoin on social media is currently neutral (3 out of5), fluctuating between bearish and rebounding to $102K, then settling in the low to mid $90Ks as traders await more significant market movements.
Meanwhile, Ethereum recently regained momentum, briefly surpassing the $4,000 mark, but has since followed Bitcoin’s downward trend, now aiming to maintain above the $3,000 level. A breach below this could trigger panic and create potential buying opportunities. Therefore, Santiment rates ETH 2/5, slightly bearish.
“If this gets breached, expect panic to really begin to ensue and buy opportunities to arise.”
XRP Hot, BNB Lukewarm
XRP enjoyed an impressive rally, and “has actually been holding up quite well compared to other altcoin peers”, the analysts wrote. Given the increased optimism around XRP, the rating is slightly bullish, with 4/5.
Although BNB did rally as well, there seems to be more uncertainty in the air, meaning sentiment rates 3/5 or neutral for the “normally quiet top asset”.
SOL Seems Semi-Bullish and DOGE Rolls Over for Bears
Dogecoin and Solana are two of the most popular crypto assets, but their market outlooks could not be more different.
The Santiment analysts say perceptions around Solana are semi bullish (4 out of 5), even though it has recently underperformed compared to its peers. While retail bought the post-Christmas dip, the analysts say it’s advisable to wait for enthusiasm around SOL to cool further before identifying an optimal buying point against the crowd.
Unfortunately for the OG meme coin, even Elon Musk’s brief stint as ‘Kekius Maximus’ couldn’t change that bears continue to dominate Dogecoin, as the crowd favourite lost 28% of its market cap.
Although this could well play in the favour of those looking for a contrarian bet:
“Crowd sentiment has been near its lowest point over the past year, meaning there is actually some nice upside to be a daring contrarian toward DOGE (in particular) if crypto markets begin to trend upward again.”
Which is the whole point about the contrarian strategy, be bullish when others are bearish, and well…vice versa. Not always easy to sail the contrarian way, but it can be worth your while.
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