Tracking the top 10 currencies from market sentiment

Original source: cryptonews

Compile, source: Shallot APP

Although the crypto market has rebounded from a week ago, the sentiment of the cryptocurrency market has not recovered from this plunge.

According to data from the crypto market sentiment analysis company Omenics, the comprehensive 7-day moving average market sentiment indicator of the top 10 currencies by market value fell for the fourth consecutive week, from 4.39 points on Monday to 4.3 points today.

This sentiment indicator analyzes the historical data of the corresponding currency, the popularity of social media (analyzed from Twitter, Reddit, etc.), the fundamentals (based on the level of project development and community participation), news, Buzz tags (analyzing market trends through Buzz tags) and Data on the Bitcoin chain. The sentiment analysis corresponding to the comprehensive score situation is as follows:

0-2.5: very negative

2-4: partial negative area

4-6: neutral area

6-7.5: Positive area

7.5-10: very positive

According to the sentiment indicators of a single currency, the scores of the sentiment indicators of the top 10 currencies last week have all fallen, and the scores of 5 currencies have increased this week. Although this did not reduce the overall sentiment index to a greater extent, it still failed to exceed the score of last week and also showed a downward trend.

It is worth mentioning that there are 4 currency sentiment indicators in the negative zone this week, which are ETH, EOS, BNB and XLM, while last week only BNB was in the negative zone.

The other four currencies (XRP, BCH, LTC, TRX) have index values ​​in the range of 4.1 to 4.7, and only BTC and USDT have scores exceeding 5. Among them, BTC rose from 5.1 to 5.2, and USDT rose from 4.9 to 5.3. The sentiment indicators of these six currencies are all in neutral areas.

In addition, among the 5 currencies whose scores have risen in the past week, USDT has become the biggest winner with a 11.5% increase. XRP's score rose from 4 to 4.3, an increase of 9.5%, ranking second.

Specifically, Tether scored the highest in technology with a score of 6.9, followed by news (5.6) and social media popularity (5.2), while the lowest scores were Buzz tags (4.4) and fundamentals (3.4) . Ripple has the highest score in news (5.9 points), followed by social media enthusiasm (5 points).

On the other hand, EOS and ETH's sentiment index scores fell the most, falling by 15.9% and 15.5%, respectively, and both were in the negative zone. EOS scored the highest in news and Buzz tags, with 4.9 and 4.3 points, followed by fundamentals (3.9 points) and technology (2.7 points). ETH's fundamentals score is 5.7 points.

In addition, it is worth noting that, as shown in the figure below, this sentiment indicator has a significant positive correlation with the price of Bitcoin.

In addition, according to Alternative.me data, on December 2, the panic and greed index was 28 (25 the day before yesterday), the degree of panic eased, and the level changed from extreme panic to panic. (Note that the threshold of this index is 0-100, based on volatility (25%), market transaction volume (25%), social media popularity (15%), market research (15%), and the proportion of Bitcoin in the entire market (10%), Google Hotwords Analysis (10%).

As for how investors' pessimism will affect the crypto industry, former Goldman Sachs partner Spartan Black previously said that this will bring long-term risks to the cryptocurrency industry. Even early crypto diehards now “sound like a death knell for the industry”. This “pessimistic” argument is not good for the entire crypto industry.

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