Extreme Bearishness Could Signal a Bull Run
Crypto analytics firm Santiment is suggesting that the current wave of negative investor sentiment could actually be a good sign for crypto prices. They’ve noticed a surge in online chatter about selling crypto, similar to what happened right before a major price rally in the last quarter of 2023. Essentially, they believe that excessive bearishness often precedes a price increase. Santiment points to spikes in social media mentions of selling around December 4th and January 8th, both of which preceded market rallies.
Growing Number of Crypto Wallets is Another Positive Sign
Besides negative sentiment, Santiment also highlights a significant increase in the number of wallets holding major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), XRP, Cardano (ADA), and Dogecoin (DOGE). They see this as a sign of long-term confidence in these projects. Conversely, a drop in wallet numbers might suggest fear and uncertainty, potentially creating a buying opportunity for those willing to take a contrarian stance. The specific wallet increases mentioned are:
- BTC: +102,000 wallets
- ETH: +645,000 wallets
- XRP: +58,000 wallets
- ADA: +2,800 wallets
- DOGE: +29,000 wallets
(Note that LINK saw a decrease of 3,300 wallets).
Disclaimer:
This information is for general knowledge only and is not financial advice. Always do your own research before investing in cryptocurrencies./p>
