In a significant leap towards better market analysis, the crypto analytics platform Santiment has revamped its Social Trends Dashboard. This upgrade aims to bring in-depth insights into market sentiment, specifically for cryptocurrencies, across various social media platforms like Twitter, Reddit, Telegram, and 4Chan. The updated tool identifies the most discussed crypto assets and gauges the prevailing mood—be it positive, neutral, or negative—towards each one.
Santiment recently shared a Twitter post providing insights on the current illuminating data on prevailing cryptocurrency market sentiments.
Santiment’s data scraping algorithm is vital in dissecting the massive influx of conversations to categorize them as positive, neutral, or negative. This algorithmic scrutiny aims to forecast market trends and possible asset volatility. However, as is always the case with market predictions, these insights should serve as a guide rather than a guarantee. Santiment advises traders to conduct research and not simply counter-trade based on crowd sentiment.
One of the standout features of this new update is the Trending Tokens section. It cuts through the noise of other trending topics like politics and memes to pinpoint the top 10 cryptocurrencies that social media is buzzing about. This gives traders an edge in identifying which assets to consider for their portfolios. Another interesting aspect is the AI-driven summary for each listed asset, which delivers a quick snapshot of why a particular cryptocurrency is gaining attention.
High social volume often correlates with price pumps, but there could be exceptions. If an obscure asset suddenly becomes the talk of the town, it’s likely that something unexpected—price volatility—is about to happen. Traders could use this information to their advantage but should tread carefully.
A disproportionate amount of positive sentiment for an asset could often be a warning sign. When everyone is optimistic about an asset, particularly when its price soars, it could mean the market is due for a correction. Conversely, an asset receiving overwhelming negative commentary may present a buying opportunity. But this comes with a caveat: traders should dig deep to understand the cause of the negative sentiment. If it’s related to something more fundamental, like a scam or the developers leaving the project, caution is advised.
Santiment’s Mid-Term Trends page would be a valuable resource for traders adopting a more mid-to-long-term investment strategy. This section provides a grid comparison of 9 trending mid-term topics, allowing traders to gauge market direction.
The Hourly Trends section is not just confined to crypto subjects. Topics like “COVID-19” or “Ukraine” appear if they’re driving conversations in crypto-related forums. Such topics could profoundly impact the market, and being among the first to know could yield profitable trading positions.
Santiment also plans to introduce an Alpha Narratives tab and encourage user feedback to enhance the platform further. With these updates, Santiment is increasingly becoming a go-to resource for traders looking to navigate the turbulent waters of cryptocurrency markets.
