XRP Sentiment Takes a Dive After Failed Bitfinex Attack
The sentiment around XRP has turned negative following a failed attempt at a Bitfinex attack using the “partial payments exploit.” This is according to on-chain analytics firm Santiment, which analyzes the sentiment based on two metrics: Sentiment Balance and Social Volume.
Understanding the Metrics
Sentiment Balance tracks the sentiment among social media users by using a machine-learning model to distinguish between positive and negative sentiments. Social Volume measures the amount of discussion related to a topic on major social media platforms.
Weighing Sentiment with Social Volume
The Weighted Sentiment indicator takes into account both Sentiment Balance and Social Volume. It reflects a spike in sentiment when the sentiment leans towards one side and there is a large sample size of posts discussing the topic.
Negative Sentiment as an Opportunity
The failed Bitfinex attack has worsened the sentiment around XRP. However, historically, XRP’s price has moved against the expectations of the majority. The current negative sentiment could potentially pave the way for a price surge.
XRP Price Movement
Since the failed recovery attempt, XRP has been trading mostly sideways around $0.576.
Hot Take: Negative Sentiment Presents an Opportunity for XRP
The recent plunge in sentiment surrounding XRP may actually work in favor of the cryptocurrency. Historically, XRP’s price has moved contrary to popular expectations. With the current negative sentiment, there is a possibility that XRP may experience a price surge. Traders who got too hyped during previous recovery attempts may have an easier time witnessing growth now that sentiment is completely opposite.
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