IS SPRING HERE? WHAT WEIGHTED SENTIMENTS SAY ABOUT BITCOIN, BNB, XRP, POLKADOT

As winter moves into spring, will the longer days and blooming flowers perhaps wield a positive influence on investor sentiment? Here’s what the data had to say.

If winter comes, can spring be far behind?

Early on 13 March, Santiment released data to show what investor moods were saying about price expectations. Weighted sentiment for Bitcoin [BTC], BNB, and XRP were all positive, but still lower than 0.1. Even so, Santiment theorized that this was a signal that traders had bullish ambitions for the assets.

However, by press time, Bitcoin’s weighted sentiment had fallen back into negative territory and clocked in at -0.614. Weighted sentiment for Bitcoin previously took a hard fall under zero when the asset’s price dropped from $44,000, showing that market uncertainty wasn’t about to end any time soon. For now, it seems that Bitcoin has many more resistance levels to shatter before jaded investors respond with euphoria.

Tameless, and swift, and proud

While BNB has been tracking Bitcoin’s price performance, weighted sentiment for the asset was above 1.0. However, a look into the past shows that BNB has a trend of short euphoric spikes followed by longer periods of negative weighted sentiment.

As far as XRP is concerned, the asset saw a rally of over 15%, possibly thanks to the judge in the SEC v. Ripple Labs lawsuit denying the SEC’s motion to strike Ripple’s Fair Notice defense. In fact, weighted sentiment for XRP has been in the positive territory since about 7 March and was 1.337 at press time.

This, despite XRP’s price again climbing to a level seen in late February. However, since XRP investors’ euphoria has been followed by dramatic price crashes, investors will need to look at both on-chain activity and court updates.

Meanwhile, as Santiment noted, Polkadot [DOT] saw a dip from positive to negative territory despite a rise in price, and the on-boarding of some new parachains. However, weighted sentiment for DOT has been largely negative since mid-December.

Trumpet of a prophecy?

Many eyes are on Terra [LUNA], a rising star asset now among the top ten cryptos. However, euphoric highs of close to 4 were followed by a fall in price, which led to a nearly vertical fall in sentiment. That said, investors don’t seem to be ready to give up as weighted sentiment was 0.104 for the asset on 12 March.

To keep weighted sentiment above zero, LUNA will have to prove that its towering rallies can be consistent.

At press time, ADA was trading at $0.81, having risen by 1.97% over the past 24 hours while falling by 0.42% in seven days. While this has been a cause of concern for many in the Cardano community who were hoping for quick gains, others – including founder Charles Hoskinson – are convinced that DeFi will take the project to new heights.

It started with a Twitter thread where a self-described “ADA HODLer” shared a picture of Cardano’s rising total value locked [TVL]. Hoskinson added his take and claimed that after the Vasil hard fork in June, more dApps would launch. This, in turn, would reportedly amp up the TVL.

Higher than hope?

At press time, Cardano’s TVL was around $188.34 million, having risen by 6.17% in 24 hours.

While certainly impressive when taken in isolation, Cardano’s rank by TVL was 28, giving it a very small part of the TVL share.

Additionally, the number of Cardano active addresses has been on the fall and was around 126,343, at the time of writing.

To that end, what is the Vasil hard fork slated for June and why is it so important? According to a post from IOG, the upcoming hard fork – named after Hoskinson’s late friend – will focus on an “array of scaling enhancements.” A lot of the changes will be geared towards enhancing the development of DeFi, DEXs, and smart contracts. Pipelining is just one scaling method that is part of the overall plan for Cardano,

The post stated,

“…IOG is working across a host of new products and features, from a DApp store and a new light wallet product, to Mithril fast sync solution and sidechains.”

This explains why Hoskinson is certain that dApps and TVL will get a boost this summer.

Beatings will continue until morale improves

But, one must ask how is morale in the Cardano camp? Well, data from Santiment revealed that weighted sentiment is still in the negative zone as ADA’s price moves mostly sideways.

However, one recent controversy has been the way in which Messari’s platform records Cardano’s transaction volumes [24h]. According to Messari’s stats, Cardano’s transaction volume of $32.38 billion put it ahead of Bitcoin and Ethereum combined.

Needless to say though, many investors have been using this to lift their faith and spirits.