Crypto Analytics Firm Santiment Raises Concerns About Solana, NEAR Protocol, and Altcoins
Crypto analytics firm Santiment has identified a key metric that raises concerns about Solana (SOL), NEAR Protocol, and Stacks (STX).
The firm notes that the discussions surrounding Solana on social media platforms have been rapidly increasing. This surge in social media activity often indicates a market top. The same pattern can be observed for Stacks, a project focused on enabling smart contracts and decentralized finance applications on Bitcoin, as well as for NEAR Protocol, a competitor to Ethereum.
Santiment advises caution when it comes to these altcoins, stating that when there is mainstream talk at such high levels, fear of missing out (FOMO) tends to create price tops.
Altcoin Performance
Solana is currently trading at $89.04, experiencing an 11.9% increase in the last 24 hours. NEAR Protocol is trading at $3.42, with a 15.6% increase in the same time period. On the other hand, Stacks is trading at $1.43, showing a 5.7% decrease in the last 24 hours.
Declining Trading Volume and Social Media Discussions
Santiment also warns about declining trading volumes for several altcoins, signaling a cooling market. The firm emphasizes that Bitcoin’s trading volume has remained high since October, while many altcoins have experienced declines.
Social media discussions have also decreased for several altcoins after their surges, indicating market tops. This pattern of Bitcoin hype peaking first and then followed by altcoins is considered normal and suggests that BTC profits were being distributed to altcoins for one final hype cycle before discussion rates fell.
Exchange Supply and Mean Dollar Invested Age
Santiment points out that the exchange supply of Bitcoin is increasing, which often indicates a bearish signal. Additionally, the firm is closely monitoring the mean dollar invested age metric for Bitcoin. If BTC’s market value continues fluctuating in the current range and the mean dollar invested age line continues to move down, it could signal a sudden surge to the $50,000 level in early 2024.
Hot Take: Santiment Raises Concerns About Altcoins and Bitcoin Ecosystem
Crypto analytics firm Santiment has issued a warning regarding Solana, NEAR Protocol, and altcoins based on increasing social media discussions. It cautions that such high levels of mainstream talk often lead to price tops due to FOMO. While Solana, NEAR Protocol, and Stacks have shown varying price performances, declining trading volumes and social media discussions for several altcoins indicate a cooling market. Santiment also notes an increase in the exchange supply of Bitcoin and closely monitors the mean dollar invested age metric for potential price surges. Investors are advised to take a cautious approach when dealing with these altcoins and monitor market trends closely.
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