Analytics Firm Says Bitcoin and XRP Flashing Bullish Signals, Predicts Further Downside for One Top-25 Altcoin
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 gone up.
According to Santiment, the social dominance metric, which indicates the percentage of discussions on various platforms focused on one asset at any given time relative to other assets, has historically acted as a reliable signal for predicting the bottom.
“Bitcoin’s price has hit a three-month low. According to our sentiment data, negative comments surged to month highs. Shorting on exchanges has at least halted the bleeding. BTC social dominance has also spiked, which is historically a good bottom signal.”
Turning to XRP, Santiment says that optimism among traders that Ripple Labs and the U.S. Securities Exchange will reach a settlement in the ongoing lawsuit has contributed to a price bump for the sixth-largest crypto asset by market cap.
“XRP Network is +17% this past week, while Bitcoin (-5%), Ethereum (-16%), and most of crypto has declined. The ongoing battles between Ripple and the SEC regarding increased regulation has mainly led to increased trader optimism and high whale movement.”
Santiment next turns to Ethereum (ETH) fork and proof of work blockchain, Ethereum Classic (ETC). The crypto analytics firm says that the 22nd-biggest crypto asset by market cap is set to fall further as short interest surges.
According to Santiment, Ethereum Classic is experiencing the highest level of short interest on exchanges among 150 crypto assets, in contrast with blockchain interoperability platform Ren (REN) which is witnessing the highest level of long interest.
“Ethereum Classic has seen a high level of bets against its price, particularly after last week’s ETH merge. On the other end, there are a lot of longs toward Ren. Overall, though, the perpetual contract funding rates on exchanges point to traders expecting further downside.”
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