FOMO Grips Social Media Users Towards XRP & Litecoin
Recent data has revealed a surge in Fear of Missing Out (FOMO) sentiment among social media users towards XRP and Litecoin. This phenomenon could potentially indicate a bearish outlook for the prices of these cryptocurrencies in the near future.
Weighted Sentiment Trends for XRP & Litecoin
Analytics provided by Santiment suggests that both XRP and Litecoin have witnessed an uptick in their weighted sentiment following a recent price recovery. This weighted sentiment is derived from two key metrics – Sentiment Balance and Social Volume.
- Sentiment Balance reflects the net sentiment surrounding a particular coin on major social media platforms. It utilizes a machine-learning model to classify posts as positive or negative and then calculates the difference to determine the overall sentiment.
- However, one limitation of Sentiment Balance is its inability to account for the number of users sharing the sentiment, which might skew the results towards a minority opinion.
- Weighted Sentiment addresses this issue by integrating Social Volume data, which monitors the level of discussions about an asset on social media. This ensures that a spike in weighted sentiment is only recorded when both sentiment balance and social volume are high.
FOMO Effect on XRP & Litecoin
The analysis indicates that XRP experienced a surge in FOMO earlier in the month, coinciding with a peak in its price. The current spike in weighted sentiment could pose risks for the ongoing recovery of XRP and Litecoin, making them potentially volatile investments.
XRP Price Performance
Over the past week, XRP has witnessed a significant price rally of nearly 26%, pushing its value above the $0.54 mark.
Hot Take: Proceed With Caution
As social media FOMO intensifies towards XRP and Litecoin, investors are advised to exercise caution and carefully evaluate the potential risks associated with these cryptocurrencies amidst the current market sentiment.
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