Santiment, a cryptocurrency analytics platform, says increasing the chances of digital assets recovering is one of the key factors.
The market intelligence company said in a new thread on social media platform
“Crypto has been a bit of a disappointment for traders over the past week, with more talk of selling than usual. “As we saw throughout the fourth quarter bull rally, if the crowds start to get too bearish, the potential for price upside becomes much greater.”
According to a chart from Santiment, social media mentions of digital asset sales surged on December 4, before the market exploded. We’re also likely to see a surge in mention sales on social media on January 8, signaling another rally across markets.
Santiment points out that the increasing volume of cryptocurrency wallets associated with major assets such as Bitcoin (BTC), Ethereum (ETH), XRP, Cardano (ADA), and Dogecoin (DOGE) is also a good sign.
“BTC: +102,000 wallets.
ETH: +645,000 wallets.
XRP: +58,000 wallets.
ADA: Over 2,800 wallets.
DOGE: +29,000 wallets.
Links: -3,300 wallets.
When wallets rise quickly, the community feels comfortable with the project for the long term. “When wallets drop, there can be excessive FUD (fear, uncertainty and doubt) which indicates a buying opportunity (as opposed to a panicked crowd).”
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