Crypto analytics firm Santiment is pointing out some under-the-radar bullish signals in five crypto assets.
In a new blog post, Santiment says they’ve been keeping an eye on the number of new addresses being created for each crypto plus their activity, compared to the number of deposits on exchanges.
The research firm says that when the number of new addresses and amount of activity goes up, and at the same time, the amount of deposits on exchanges goes down, it can be interpreted as a potentially bullish signal.
“When active addresses move up over time for a crypto asset, while active deposits move down, it’s a reliable indication of a token seeing growing utility without funds moving to exchanges for potential sell-offs. In other words, this is a very bullish pattern our pro traders look for often.”
They previously posited this metric with Ethereum (ETH) before the second biggest crypto by market cap leaped to new all-time highs.
“Updating our previous update, Ethereum has now skyrocketed to ANOTHER new all-time high of $2,143. Our ETH data provides a textbook 101 example of why:
Rising daily new addresses created
Rising address activity
Declining exchange deposits.”
After using the same data on Ethereum, Santiment is revealing that five other digital assets are screaming the same signal, potentially indicating that they could follow ETH’s footsteps in launching off into a new bull rally.
Ethereum, often a bellwether for altcoins at large, is currently trading at $2,112 at the time of writing, with a market cap of $245.1 billion.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/Nejron Photo