Data shows that social media sentiment around Dogecoin and Solana saw significant improvement following the market reversal.
Social media is now bullish on Dogecoin, Solana and Cardano
In a new article on The relevant metric here is “positive/negative sentiment” which, as the name suggests, tells us how bullish and bearish sentiments related to a given asset compare across major social media platforms.
This indicator works by placing posts/comments/messages present on the platforms through a machine learning model to separate positive and negative messages. You then need to report these accounts to calculate the net situation around the room. When positive/negative sentiment has a value greater than zero, it means that bullish messages outweigh negative messages. On the other hand, being branded implies that investors as a whole share negative sentiment.
Now here is a chart that shows the indicator trend for the six major coins: Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Dogecoin (DOGE), Solana (SOL) and Cardano (ADA):
As seen in the chart above, positive/negative sentiment has recently seen an increase for Solana, Dogecoin, and Cardano, suggesting that sentiment around the assets has improved. Among them, traders are the most positive towards SOL, with its bullish comments being around six times higher than the bearish comments. The metric has a value of approximately 3 for ADA and 2 for DOGE.
The improved sentiment towards Dogecoin and others came after an industry-wide price rebound. Interestingly, while the bullish wave has made investors more optimistic about these coins, it has failed to do so in the case of Bitcoin, Ethereum and XRP, the three major cryptocurrencies in terms of market capitalization.
The indicator is near the zero neutral level for these assets, implying that there are about as many positive messages as negative ones. However, this fact may not be bad for BTC and the crypto market.
Related Reading: Analyst Says Bitcoin Fun Will Start When This Reversal Happens
Historically, digital assets have tended to move in a direction opposite to the majority’s expectations. This means that an overly bullish crowd can lead to highs, while an extremely bearish crowd can lead to lows.
Thus, the hype around Dogecoin, Solana and Cardano could act to the detriment of their prices, while Bitcoin, Ethereum and XRP could have some upside room before reaching a peak.
DOGE Price
At the time of writing, Dogecoin is floating around $0.352, up more than 2% over the past week.