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Santiment reports negative sentiment on top cryptos like Solana, and XRP, as bearish crowd narratives grow amid market downturn.
The latest data from market intelligence platform Santiment indicates a shift in crowd sentiment towards several top cryptocurrencies, including Solana (SOL), and XRP.
As the broader crypto market experiences a downturn, these assets have garnered some of the most negative crowd narratives. Per Santiment, historically, assets with bearish sentiment often see an eventual rise.
😨 Chainlink, Ethereum, Bitcoin, Solana, and XRP are the assets the crowd has turned the most negative on during this mild crypto slump. Coins with the most bearish crowd narratives historically have the best chance of rising. Here are the 20 best candidates:
🪙1) #Chainlink… pic.twitter.com/9NzhjE0F0Z
— Santiment (@santimentfeed) October 9, 2024
XRP Faces Uncertainty
XRP, in particular, has been the subject of increased negativity, despite a slight price increase of 0.78% in a day. Notably, XRP’s trading volume has dropped by 14.87% over the past 24 hours, while its market capitalization remains at $30.13 billion.
The sentiment weight for XRP currently stands at -0.33963, reflecting growing concerns among investors. These concerns stem largely from the legal case between the U.S. Securities and Exchange Commission (SEC) and Ripple.
The SEC’s recent filing of a Notice of Appeal has introduced fresh uncertainty to the market, with investors monitoring the next steps in the case. The submission of the SEC’s docketing statement within the appeal window could lead to significant price fluctuations for XRP.
Solana’s Bearish Sentiment
Similarly, Solana (SOL) has witnessed a downturn in sentiment, with a weighted score of -0.400815. Over the past week, Solana’s price has declined by 1.19%, and its trading volume has decreased by 25.41%, totaling $1.54 billion. Despite these struggles, Solana maintains a strong market capitalization of $66.23 billion.
The market sentiment surrounding Solana has been particularly negative, as traders remain cautious about the asset’s future. However, projections from a Standard Chartered executive offer some hope. The bank anticipates that Solana could outpace Ethereum (ETH) in the coming years, with a potential fivefold rise in SOL’s price.
LINK and ETH Also See Negative Sentiment
Beyond XRP and Solana, other top cryptocurrencies like Chainlink (LINK) and Ethereum (ETH) have also experienced significant bearish sentiment.
Chainlink holds the highest negative sentiment score among the top 20 cryptocurrencies, with a weighted score of -0.574032. LINK’s daily trading volume has dropped by 11.61%, bringing its total to $235.95 million, while its market cap remains stable at $6.65 billion.
Ethereum follows with a sentiment score of -0.476884. Despite a slight price increase of 0.10% over the past week, the crowd sentiment has turned negative. Ethereum’s price currently sits at $2,433.46, with a market cap of $292.94 billion.
Bitcoin and Other Cryptos Affected
Bitcoin (BTC), the largest cryptocurrency by market cap, has not been spared from the negative sentiment. With a score of -0.457617, Bitcoin’s price has only dropped by 0.65% over the past week, but its trading volume has seen a more significant drop of 19.38%, currently at $24.83 billion.
Other notable assets experiencing bearish narratives include Optimism (OP), Polygon (MATIC), Sui (SUI), Cronos (CRO), Fantom (FTM), and Avalanche (AVAX).
Majority of Assets See Bearish Sentiment
According to Santiment, approximately 52% of assets with market capitalizations above $1 billion are experiencing similar negative sentiment trends.
Following Santiment’s observation, a community member humorously compared Bitcoin’s performance in “Uptober” to the film “The Hunt for Red October.” Santiment responded, agreeing that overly mainstream narratives, like expecting October to always be bullish, can lead to market corrections driven by retail FOMO.