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Data shows Cardano is witnessing a stronger bullish sentiment than the other top cryptocurrencies like Bitcoin and XRP.
Cardano Sentiment Is Currently At Its Highest Of 2024
According to data from the analytics firm Santiment, the sentiment around cryptocurrencies has marked an improvement following the rebound Bitcoin and others have enjoyed.
The indicator of relevance here is the “Weighted Sentiment,” which itself is based on two other metrics: the Sentiment Balance and the Social Volume. The first of these, the Sentiment Balance, measures the net sentiment around an asset currently on major social media platforms.
This indicator works by running posts/threads/messages on these platforms through a machine-learning model to determine whether they are being positive or negative about the cryptocurrency. It then subtracts the two types of posts to find the net situation on social media.
There is a flaw with this metric, though, and it’s the fact that it may not always be representative of the actual sentiment shared by the majority of the users, as it can only reflect the mentality of those who have participated in some discussion (that is, made some posts).
The Weighted Sentiment also incorporates the second indicator: Social Volume. This metric keeps track of the total number of posts that talk about the given coin. In other words, it tells us about the amount of talk the asset is witnessing right now.
The Weighted Sentiment takes the Sentiment Balance and weighs it against the Social Volume. Thus, the indicator’s value only registers a spike (in either direction) when not only is there a high net sentiment on social media, but also, a large amount of users are partaking in discussion.
Now, here is a chart that shows the trend in the Weighted Sentiment for the five top coins, Bitcoin (BTC), Ethereum (ETH), BNB (BNB), XRP (XRP), and Cardano (ADA), over the past few months:
The value of the metric appears to have been the most positive for Cardano in recent days | Source: Santiment on X
As displayed in the above graph, the sentiment around these top coins has seen an uplift recently. Cardano, especially, has enjoyed a jump in its Weighted Sentiment with the latest market recovery.
Currently, the indicator is at a value of 1.69 for ADA, while ETH, the cryptocurrency that the social media users are the second-most bullish towards, has it at around 0.80.
While the positive sentiment does suggest that investor confidence in ADA is still strong despite the poor year it has had so far, excessive hype has proven to be a bearish signal in the past.
Thus, assets like Cardano and Ethereum, which are seeing a notable amount of bullish sentiment, may not be in the best position to see a further surge. Bitcoin and XRP, on the other hand, still have their Weighted Sentiment at only mild positive levels, which can potentially play into their favor.
ADA Price
Cardano has observed a jump of more than 4% over the last 24 hours, which has taken its price to $0.344.
Looks like the price of the asset has gone up over the past day | Source: ADAUSD on TradingView
Featured image from Shutterstock.com, Santiment.net, chart from TradingView.com
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