Market Anticipates Dip In February: Santiment On Trader Skepticism

Crypto analytics platform Santiment tweeted that after a positive crypto price action in the month of January, the market can anticipate a dip in February. The platform added that trader skepticism improves the probability of prices rising further.

Moreover, Santiment mentioned that prices usually move in the direction the crowd seems most unlikely. According to the analytics platform’s dashboard, when the crowd is “Mainly Bullish,” they experience frequent price drops, compared to the “Mixed Crowd” when the prices can move either way. Meanwhile, when the crowd remains “Mainly Bearish,” the prices were observed to bounce more often.

Yesterday, the analytics platform tweeted three crypto market behaviors that users should note this week. Firstly, AI tokens AGIX and FET are receiving increased attention as AI projects gain popularity. However, Santiment warns that the highest-ranked tokens do not always make the best long-term investments.

Secondly, SAND, which has had a decline in its network activity, has recently seen an increase in deposits on Binance. The study suggests that now would be a good moment to start holding SAND because individuals who have already made deposits are probably profitable and may want to sell the token.

Additionally, last week, Santiment shared the following on Twitter: among a few warning signs that yesterday’s crypto prices would see a pullback today was the largest profit/loss transaction ratio for Bitcoin since Feb. 17, 2021. The “ratio of on-chain transaction volume in profit to loss” was the pertinent indication in this case.