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Cardano shows stronger bullish sentiment than Bitcoin and XRP

Cardano shows stronger bullish sentiment than Bitcoin and XRP

GrafaGrafa2024/08/21 02:40
By:Mahathir Bayena

Recent data indicates that Cardano (CRYPTO:ADA) is experiencing a more robust bullish sentiment compared to other major cryptocurrencies such as Bitcoin (CRYPTO:BTC) and XRP (CRYPTO:XRP).

According to Santiment, a prominent analytics firm, the sentiment surrounding cryptocurrencies has improved following recent market recoveries.

The key metric used here is “Weighted Sentiment,” which combines two indicators: Sentiment Balance and Social Volume.

Sentiment Balance assesses the net sentiment on major social media platforms by analyzing posts, threads, and messages to gauge whether the overall tone is positive or negative.

This balance is then adjusted based on Social Volume, which measures the total number of posts about the cryptocurrency.

The Weighted Sentiment indicator reflects significant spikes when both the net sentiment and social media discussions are high.

Currently, Cardano’s Weighted Sentiment is at 1.69, indicating a strong positive sentiment, whereas Ethereum (CRYPTO:ETH), the second most bullish cryptocurrency, has a sentiment value of around 0.80.

The chart provided shows that Cardano has seen the most significant increase in sentiment among the top five cryptocurrencies—Bitcoin, Ethereum, BNB, XRP, and Cardano—over recent months.

Despite this positive sentiment, it's worth noting that excessive hype can sometimes signal a bearish trend.

Historically, high bullish sentiment has not always translated into sustained price increases.

Bitcoin and XRP, with more moderate sentiment values, might benefit from their milder positive levels, potentially positioning them for favorable outcomes compared to more hyped assets.

While Cardano’s current sentiment is notably high, the market should remain cautious as high sentiment does not always guarantee further price surges.

Currently, Cardano is priced at $0.3441, XRP is at $0.5962, and Bitcoin is valued at $59,165.47.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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