Leading crypto analytics firm Santiment says one metric they track signals a bullish reversal in the market based on historical performance.
According to Santiment, fear, uncertainty and doubt (FUD) is catching up peak levels as determined by the prevalence of negative crypto terms such as “sell” on several social media platforms.
Using their social dominance methodology, Santiment says that negativity in the crypto market is reaching a level that would normally signal a bottom.
The downside is largely due to the implosion of FTX and the arrest of its disgraced founder Sam Bankman-Fried, as well as questions about the financial stability of Binance, the world’s largest crypto exchange, according to the analyst firm.
Federal Reserve Chairman Jerome Powell also continues to drag markets down with his hawkish policies.
“There’s a whole lot of doom and gloom in crypto right now. Binance FUD, Jerome Powell’s Bigotry and Ongoing [Sam Bankman-Fried] trial title – many reasons why capitulation prevails to end the week. Historically, this uncertainty is a lower signal.”
Sentiment too appearance with three altcoins signaling bullish sentiment with activity in once-dormant wallets.
“Several altcoins are seeing a huge spike in address activity and dormant wallets waking up to move their funds right now. Others remain stuck in the mud and are more likely to be left behind.”
Santiment says the automated annual yield processing protocol (YFI) shows impressive network activity “after a brief period of depression.”
At the time of writing, YFI is trading hands at $5,626.
According to Santiment, the decentralized finance project REN (REN) is “not very strong due to its difficult financial situation”.
At the time of writing, Ren is trading at $0.074.
Finally, Santiment says Uniswap (UNI), a decentralized crypto exchange that trades non-fungible tokens (NFTs), is showing strong growth in terms of network activity.
“JUNE previously had a strong rally when the NFT market was announced. But still, we can see it growing strongly, even compared to the NFT-related pump.”
At the time of writing, UNI is trading at $5.35.
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