Three altcoins now have more bullish short-term outlooks than Bitcoin (BTC), according to the crypto analytics firm Santiment.
Santiment says Chainlink, which provides a network to securely connect external data across different blockchains, looks the most bullish. LINK soared to an all-time high of $6.51 on July 8th after China’s Blockchain Service Network (BSN), the country’s first national-level blockchain alliance, announced in late June that it was utilizing the platform’s technology.
In addition, Santiment says Ethereum (ETH) and Ren (REN) are poised to outperform BTC in the near term.
Santiment looked at each asset’s three-day averages in three metrics. The first, Network Value to Transactions Ratio (NVT), compares the value transferred on a specific network (transaction volume/token circulation) to the network’s market cap. If the transaction volume is low relative to market cap, an asset is considered overvalued and vice versa.
The second, Daily Active Addresses (DAA) vs. Price Divergence, compares an asset’s price action to the number of unique crypto addresses interacting with that specific coin on a daily basis. The metric views price action that outpaces DAA as a bearish signal, and vice versa.
The third metric, Sentiment Volume Consumed, measures the sentiment of market participants on Twitter.
Santiment evaluated each asset using a simplified rating system: 0-10, with 0 representing the most bearish and 10 the most bullish. A 5 implies a prediction of sideways consolidation.
Bitcoin scored a 2 on the NVT, a 5 on the DAA vs. Price Divergence metric, and a 6.5 on Sentiment Volume Consumed, for an average rating of 4.5, or “neutral.”
Ethereum scored a 5 on the NVT, an 8 on DAA vs. Price Divergence, and a 7.5 on Sentiment Volume Consumed, for an average rating of 6.8 (slightly bullish/bullish).
LINK scored a 9 on the NVT, a 5.5 on DAA vs. Price Divergence, and a 7 on Sentiment Volume Consumed, for an average rating of 7.2 (bullish/slightly bullish).
Ren scored an 8 on the NVT, a 7.5 on DAA vs. Price Divergence, and a 3.5 on Sentiment Volume Consumed, for an average rating of 6.3 (slightly bullish).
Santiment warns that none of these scores indicates the company’s long-term view on each asset.
“With every weekly volume we release of our Bold Predictions series, we are taking a look at the most recent three-day averages (or percent changes) for each metric we’re covering. As a reminder, these signals are for intra-day traders to assess local tops and bottoms based on historically solid leading indicators…
Whether we call a project bullish or bearish for the next week or two, please remember that this has no relevance to what we think of the asset’s long-term viability as an investment.”
[adinserter block="1"]Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/PHOTOCREO Michal Bednarek
