Crypto analytics firm Santiment says that both Bitcoin (BTC) as well as XRP sending bullish signals amid the market downturn.
Starting with Bitcoin, Santiment says the social dominance metric of the flagship crypto asset has increased.
According to Santiment, the social dominance metric, which indicates the percentage of discussions on different platforms that were focused on one asset versus other assets at any given time, has historically acted as a reliable signal for predicting bottoms.
“The price of bitcoin hit a three-month low. According to our sentiment data, negative comments rose to monthly highs. Shorting exchanges has at least stopped the bleeding. BTC’s social dominance has also increased, which historically is a good bottom signal.”
Regarding XRP, Santiment says the optimism among traders is that Ripple Labs and the US exchange will reach an agreement in the ongoing legal battle that has resulted in a price surge for the sixth-largest crypto asset market capitalization contributed.
“The XRP network is up +17% over the past week, while Bitcoin (-5%), Ethereum (-16%), and most cryptos are down. The ongoing battles between Ripple and the SEC over increased regulation has mainly resulted in heightened trader optimism and high whale movement.”
Next, Santiment turns to Ethereum (ETH) fork and proof of work BlockchainEthereum Classic (ETC). The crypto analytics firm says the 22nd largest crypto asset by market cap will continue to fall as short-term interest rates rise.
According to Santiment, Ethereum Classic sees the highest level of near-term interest on exchanges among 150 crypto assets, in contrast to the blockchain interoperability platform Reindeer (REN)which has the highest level of long-term interest.
“Ethereum Classic has seen a high level of betting against its price, especially after last week’s ETH merger. On the other hand, there are many longs towards Ren. Overall, however, funding rates for perpetual contracts on exchanges suggest that traders expect further downside.”
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Source: Crypto News Deutsch