Is the crypto bottom in? Analytics firm Santiment says one metric is giving off a historically bullish signal
Leading crypto analytics firm Santiment says a metric they track signals a bullish reversal in the market based on historical performance.
According to Santiment, Fear, Uncertainty, and Doubt (FUD) is reaching high levels, which is dictated by the proliferation of negative crypto terms like “sell” across multiple social media platforms.
Using her social dominance method, Santiment says that negativity in the crypto market is reaching levels that usually signal a bottom.
The negativity is largely being driven by the FTX implosion and the arrest of its disgraced founder Sam Bankman-Fried, as well as rising questions about the financial stability of Binance, the world’s largest crypto exchange, according to the analytics firm.
US Federal Reserve Chairman Jerome Powell is also driving the markets further down with his restrictive policy.
“There is a lot of doom and gloom in crypto right now. Binance FUD, Jerome Powell Hawkishness and the ongoing [Sam Bankman-Fried] Trial Headline – many reasons why capitulation prevails at the end of the week. Historically, this uncertainty is a ground signal.”
Source: Santiment/Twitter
Santiment also looks at three altcoins that are signaling bullish sentiment with activity from once-dormant wallets.
“Several altcoins are seeing large surges in address activity and dormant wallets waking up to move their funds now. Others get stuck in the mud and are more likely to fall behind.”
According to Santiment, Yearn.Finance (YFI) automatic yield farming protocol is showing impressive network activity “after a brief period of depression.”
Source: Santiment
At the time of writing, YFI is trading at $5,626.
According to Santiment, the decentralized finance project REN (REN) “is not picking up that much because of its complicated financial situation.”
Source: Santiment/Twitter
At the time of writing, Ren is changing hands at $0.074.
Finally, Santiment says that decentralized crypto exchange Uniswap (UNI), which trades non-fungible tokens (NFTs), is showing strong growth in terms of network activity.
“UNI previously experienced strong growth when an NFT marketplace was announced. But still we can see it growing strongly even compared to NFT related pumps.”
Source: Santiment/Twitter
At the time of writing, UNI is changing hands at $5.35.
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