Data shows that social media users are not optimistic about Bitcoin, XRP and other top cryptocurrencies, which could be good for their prices, despite surging prices across the market.
The positive to negative sentiment ratio of top coins remains low
According to data from on-chain analytics firm Santiment, sentiment towards digital assets has been low recently, even for currencies that have experienced historic rallies.
The relevant metric here is the “Positive to Negative Sentiment Ratio” which, as the name suggests, tells us how positively and negatively social media users are currently commenting on a particular asset.
The data for this metric is sourced from major social media platforms like X, Telegram, Reddit, and 4Chan. It feeds posts/messages/topics containing mentions of the relevant term into a machine learning model to differentiate between positive and negative and find the difference in their counts.
When the indicator is positive, it means that the number of posts with positive sentiment exceeds the number of posts with negative sentiment. On the other hand, when it is negative, it means that bearish sentiment is dominant on social media.
The chart below shows the recent trend in the positive to negative sentiment ratio for five assets: Bitcoin (BTC), XRP (XRP), Ethereum (ETH), Cardano (ADA), and Stellar (XLM).
As shown in the above chart, the ratio of positive to negative sentiment for all of these cryptocurrencies has remained almost neutral in the recent period. This shows that the market is not biased towards one side or the other.
The trend is interesting considering the sharp price increases seen in XRP, Cardano and Stellar. Generally, when such increases occur, there tends to be a surge in positive commentary, as was the case with Bitcoin early last month when Donald Trump won the U.S. presidential election.
Historically, digital assets tend to move in the opposite direction of popular expectations, which means that whenever bullish sentiment becomes too strong, price corrections are likely to occur.
Despite the surge in prices, investors in XRP and other currencies are not getting too excited, so their gains may still have room to continue.
Still, it’s important to keep an eye on the positive to negative sentiment ratio in the near term, as social media sentiment can sometimes shift quickly, especially when big news breaks. A spike in this indicator is naturally a bearish sign for the market.
XRP Price
At the time of writing, XRP is floating around $2.58, having gained nearly 17% over the past seven days.
