Crypto insights platform Santiment says it’s tracking some key metrics indicating that it may be a good time to purchase XRP and four large-cap altcoins.
In a new tweet, the analytics firm tells its 68,300 followers that crypto traders have taken a bearish stance on XRP, Ethereum (ETH), Cardano and Polkadot (DOT) after the recent sell-off in the altcoin market.
“With the altcoin downturn continuing, sentiment toward top caps like ETH, XRP, ADA, & DOT have all turned negative. Historically, crowd fear is the time to scoop up more assets.”
Santiment analysts say they measure social sentiment by using a machine learning model that tracks a large dataset of more than one million tweets.
Social sentiment is not the only metric that currently looks bullish for a few large-cap crypto assets. Bitcoin and Ethereum are also seeing lower supply ratios on exchanges compared to the levels they were at after the crypto markets crashed last month.
“Bitcoin and Ethereum are seeing their respective supply ratio on exchanges moving lower since the initial crypto market-wide dump happened three weeks ago. Traders can be encouraged that this indicates less likelihood of further major selloffs.”
Chainlink (LINK) investors also have reason to be bullish despite the asset’s recent price crash, according to the crypto analytics platform. Santiment says Chainlink’s 30-day average trader returns metric has hit a level that previously signaled strong rebounds on the horizon.
“Chainlink holders have watched the price drop from $52.20 to $25.27 (a -51.6% drop from last month’s all-time high). However, the previous times that LINK trader returns dropped this low in a 30-day span, there were major bounces that followed.”
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 loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/sdecoret