Crypto analytics firm Santiment says both Bitcoin (BTC) and XRP are flashing bullish signals amid the market downturn.
Starting with Bitcoin, Santiment says that the social dominance metric of the flagship crypto asset has increased.
According to Santiment, the social dominance metric, which indicates the percentage of conversations on various platforms focused on an asset at any given time relative to other assets, has historically served as a reliable signal for predicting bottoms.
“The price of bitcoin has hit a three-month low. According to our sentiment data, negative comments soared to multi-month highs. Shorting the exchanges has at least stopped the bleeding. BTC’s social dominance has also increased, which is historically a good sign for the bottom.”
Turning to XRP, Santiment says that optimism among traders that Ripple Labs and the U.S. Stock Exchange will reach a settlement in the ongoing lawsuit helped push prices higher for the sixth-largest crypto asset by market capitalization.
“XRP Network is +17% last week, while Bitcoin (-5%), Ethereum (-16%) and most cryptocurrencies are down. The ongoing battles between Ripple and the SEC over increased regulation have mainly led to increased trader optimism and high whale movement.”
Santiment is then turning to the Ethereum (ETH) fork and proof-of-work blockchain, Ethereum Classic (ETC). The crypto analytics company says that the 22nd largest crypto asset by market capitalization is set to decline further as short-term interest rates rise.
According to Santiment, Ethereum Classic shows the highest level of short-term interest in exchanges among 150 crypto assets, in contrast to blockchain interoperability platform Ren (REN) which shows the highest level of long-term interest.
“Ethereum Classic has seen a high level of betting against its price, particularly after last week’s ETH merge. On the other hand, there is a lot of desire towards Rennes. Overall, however, the perpetual bond funding rates on the stock markets indicate that investors expect further declines.”
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