Why Cardano (ADA) is more bullish than Bitcoin and XRP?
The cryptocurrency market has seen a recent rally and data shows that Cardano (ADA) is witnessing stronger bullish sentiment compared to top cryptocurrencies like Bitcoin (BTC) and XRP. Cardano Sentiment Hits Highest Level of 2024 According to analytics firm Santiment, Cardanoâs (ADA) âWeighted Sentimentâ indicator has reached its highest level so far in 2024.
This metric is based on two other indicators: sentiment balance and social volume.
Sentiment balance measures the net positive or negative sentiment expressed about a cryptocurrency on social media platforms.
Social volume tracks the total number of posts talking about the asset.
Weighted sentiment takes these two metrics and provides a combined score that reflects both net sentiment and the level of social media discussion around the cryptocurrency.
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ADA Outperforms Major Cryptocurrencies on Weighted Sentiment MetricThe data reveals that Cardanoâs weighted sentiment currently stands at 1.69, significantly higher than Ethereumâs 0.80, which is the second-highest among the top five cryptocurrencies including BTC, BNB, and XRP. Source: XThis indicates that not only is the net sentiment around Cardano (ADA) highly positive, but there is also a high volume of social media discussion surrounding the asset. In contrast, Bitcoin and XRP have relatively more moderate levels of positive sentiment. While the strong bullish sentiment for Cardano (ADA) suggests robust investor confidence, analysts warn that excessive enthusiasm can sometimes be a bearish signal.
Highly bullish assets like Cardano and Ethereum may not be in the best position to see further price increases in the near term. On the other hand, the relatively lower sentiment towards Bitcoin and XRP could potentially work in their favor as they may have more room to grow under the current market conditions. Cardano (ADA) has already seen a 1.4% price increase over the past 24 hours, which has pushed the price of ADA to $0.344. However, the positive sentiment may not necessarily translate into a sustained rally.
Cardanoâs ADA is currently trading at $0.34, up 1.4% over the past 24 hours. Source: CoinMarketCapThe flaw with the Sentiment Balance metric is that it may not always be representative of the actual sentiment shared by the majority of users, as it only reflects the mindset of those who have participated in the discussion. Weighted Sentiment, on the other hand, takes into account both sentiment balance and social volume, providing a more holistic view of the overall sentiment around a cryptocurrency.
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