According to Santiment, heavy bearish sentiment is sometimes a signal for an imminent upswing in price.
“We’re in a spot now where several cryptocurrencies are seeing some rising optimism, while others are being ridden off as dead. Remember that from our backtesting over the years, the more positive the mainstream crowd is about an asset, the LESS likely it is to rise. And the more the crowd believes a coin is ‘done,’ the MORE likely it is to rise.”
Solana, the blockchain platform for hosting decentralized applications, is facing a lot of fear, uncertainty and doubt (FUD), according to Santiment.
“Solana is not very highly regarded at all these days after really falling off from its $258.93 all-time high one year ago. Negative sentiment toward SOL has fallen back to its lowest levels since late July, and there hasn’t been a ton of price reaction yet. But with this much FUD, it can be considered a positive sign.”
According to Santiment, there is upward price movement for BNB, the native coin of the Binance cryptocurrency exchange, after experiencing some of its highest bear sentiment last week and yesterday’s Binance Smart Chain hack.
“Binance’s native token saw its most negative sentiment last week as well, like Solana. The price, unsurprisingly, has been climbing ever since.”
Santiment also says a price climb may be in store for TRX, a blockchain project originally designed to serve as a decentralized storage and distribution platform for social media and digital entertainment content.
“Tron’s price action has been a bit of a roller coaster ever since it had its massive crash in mid-June. Note how the 5 weeks following that crash, the crowd was extremely negative toward TRX, and the price recovered. Well, with extremely negative sentiment happening once again, we could see a similar pattern.”
At time of writing, SOL is trading hands at $33, BNB at $281.63 and TRX at $0.062.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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Featured Image: Shutterstock/Jozef Klopacka