Data suggests that market sentiment around Solana (SOL) and Bitcoin (BTC) is currently negative, which could benefit their prices.
Crowd is bearish on Solana and Bitcoin while Ethereum gets all the hype
As on-chain analytics company Santiment explains in a job on X, investors are still not optimistic about Bitcoin and Solana despite their recent rise.
The relevant indicator here is the “Weighted feeling”, which is based on two other measures: feeling balance and social volume. The first measures the current net sentiment of cryptocurrency traders.
This indicator works by analyzing social media data and applying a machine learning model to differentiate between negative and positive posts about the asset. Then it uses the difference between the two to determine which side is currently dominant.
The second interesting metric here, Social volume, tracks the unique number of posts/messages/threads on social media platforms discussing a given asset. Essentially, its value represents the amount of discussion the piece generates from social media users.
Although Sentiment Balance provides information on net market sentiment, it is not always useful, as it says nothing about how many users actually share this opinion.
Weighted sentiment solves this problem by weighing the balance of sentiment against social volume. This means that the value of this indicator only increases in either direction when there are many articles discussing the asset, and most of them are positive or negative about the coin.
Here’s a chart showing the weighted sentiment trend for three of the industry’s top cryptocurrencies: Bitcoin, Ethereum, and Solana.
The value of the metric appears to have been quite positive for ETH recently | Source: Santiment on X
As the chart above shows, weighted sentiment for Bitcoin and Solana has been negative recently. It is interesting to note that these red levels persisted despite bullish winds observed on their prices.
Ethereum, on the other hand, saw a strong positive rise in the indicator, implying that many bullish messages related to the coin are spreading on social media.
This optimism behind cryptocurrency is due to positive news on the chances of ETH spot exchange-traded funds (ETFs) being approved.
Historically, market euphoria has been a bearish sign, as price generally tends to move opposite to majority expectations. Likewise, investor fear is a positive sign of the start of new surges.
As such, at least based on sentiment, Bitcoin and Solana may be more likely to see an uptick than Ethereum, which could get too hot.
SOL Price
With gains of over 19% over the past week, Solana is among the top performers among the top coins in terms of market capitalization. Currently, SOL price is trading around $177.
Looks like the price of the coin has shot up over the last few days | Source: SOLUSD on TradingView
Featured image from iStock.com, Santiment.net, chart from TradingView.com
