The leading crypto analytics firm Santiment says one metric they track is signaling a bullish turn in the market based on historical performance.
According to Santiment, fear, uncertainty and doubt (FUD) are reaching peak levels as determined by the prevalence of negative crypto terms such as “sell” across several social media platforms.
Using their social dominance methodology, Santiment says the negativity in the crypto market is reaching a level that has usually signaled a bottom.
The negativity is largely driven by the FTX implosion and the arrest of its disgraced founder Sam Bankman-Fried as well as increasing questions about the financial stability of Binance, the world’s largest crypto exchange, according to the analytics firm.
Federal Reserve chair Jerome Powell also continues to drive markets down with his hawkish policy.
“There is a whole lot of doom and gloom in crypto right now. Binance FUD, Jerome Powell hawkishness, and the ongoing [Sam Bankman-Fried] Trial headline – many reasons why capitulation is prevalent to end the week. Historically, this uncertainty is a bottom signal.”
Santiment so looks at three altcoins signaling bullish sentiment with activity from once dormant wallets.
“Several altcoins are seeing big upticks in address activity and dormant wallets awakening to move their funds right now. Others are staying stuck in the mud, and are more likely to fall behind.”
Santiment says automatic yield-farming protocol Yearn. Finance (YFI) is showing impressive network activity “following a short period of depression.”
At time of writing, YFI is trading hands at $5,626.
Per Santiment, decentralized finance project REN (REN) is “not picking up so strong because of its complicated financial situation.”
At time of writing, Ren is changing hands at $0.074.
Lastly, Santiment says the decentralized crypto exchange Uniswap (UNI), on which non-fungible tokens (NFTs) are traded, is exhibiting strong growth in terms of network activity.
“UNI experienced a strong growth before, when there was an NFT marketplace announced. But still, we can see it’s growing strongly, even compared with NFT-related pump.”
At time of writing, UNI is changing hands at $5.35.
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