XRP, Dogecoin, & Shiba Inu All See Negative Sentiment: Signal To Buy?

Data Reveals Negative Sentiment on XRP, Dogecoin, and Shiba Inu in Wake of Recent Price Declines

According to analytics firm Santiment, social media sentiment for XRP, Dogecoin, and Shiba Inu has plummeted. The "Weighted Sentiment" indicator, derived from Sentiment Balance and Social Volume, measures the net sentiment and volume of social media discussions.

Sentiment Balance and Social Volume

Sentiment Balance analyzes social media posts related to a cryptocurrency and classifies them as positive or negative. The net sentiment is calculated by subtracting the negative posts from the positive posts.

Social Volume tracks the number of unique posts mentioning a particular asset, providing context on the extent of discussions.

Weighted Sentiment

The Weighted Sentiment combines Sentiment Balance with Social Volume. This indicator reflects a strong sentiment when both the net sentiment has a high magnitude and a large amount of posts circulate.

Negative Sentiment and Potential Opportunity

The above chart shows that the Weighted Sentiment for XRP, Dogecoin, and Shiba Inu has recently dropped into negative territory. This decline aligns with the price declines experienced by these assets.

Historically, cryptocurrencies have often moved contrary to market expectations. With the Weighted Sentiment currently negative, XRP and others may be approaching a potential bottom.

"Patient traders waiting for the crowd to abandon these large-cap altcoins may find a buying opportunity with FOMO at a 2024 low," notes Santiment.

XRP Price

XRP has dropped to $0.49, a 6% decline over the last two weeks.