Signs of Potential Price Rallies for Digital Assets despite Market Uncertainty
Digital assets are showing signs of potential price rallies despite the growing market uncertainty, according to crypto analytics firm Santiment. In a recent tweet, Santiment highlighted the dominance of fear, uncertainty, and doubt (FUD) sentiments on social media platforms, noting that it significantly outweighs positive sentiments associated with a bull market. However, Santiment also stated that increased FUD often precedes price increases for cryptocurrencies.
According to Santiment, historically, when the crypto markets become more unpredictable, there is an uptick in bearish sentiment. However, this is seen as a positive sign for patient traders. The probability of price bounces increases after FUD becomes the majority sentiment.
Historical trends support this phenomenon. In March 2021, when the USDC de-peg and the failure of Silicon Valley Bank triggered extreme market FUD, the price of Ethereum skyrocketed by 48% from $1,430 to $2,120 between March 11 and April 17.
For Bitcoin (BTC) traders, Santiment advises closely monitoring the supply of BTC on exchanges. Santiment observed a notable increase in the supply of BTC on exchanges, suggesting that traders are motivated to secure small profits.
Santiment also highlights the notable surge in address interactions, social mentions, and new address creations for Synthetix (SNX) since mid-July. Synthetix, a synthetic asset issuer, has witnessed a slight rebound this month, with a 21% increase in value during September.
Traders Place Over $500M in Buy Orders
Crypto traders have positioned buy orders in anticipation of a positive momentum shift. Data aggregated from 21 crypto exchanges reveals active purchase orders for approximately $584 million worth of Ethereum (ETH). These buy orders exceed existing sell orders by nearly 50%. The market demand for ETH currently exceeds supply by 211,500 coins, as illustrated by the Exchange On-chain Market Depth chart.
As a result, Ethereum finds substantial support in the $1,500 to $1,600 range despite the prevailing bearish sentiment. After nearly two months of decline, the majority of crypto investors are now expressing bearish sentiment.
Frequently Asked Questions:
1. What signs of potential price rallies are digital assets showing despite market uncertainty?
– Digital assets are showing signs of potential price rallies despite market uncertainty, with increased fear, uncertainty, and doubt (FUD) sentiments being dominant on social media platforms.
- What historical trends support the occurrence of price increases after FUD becomes the majority sentiment?
- Historical trends show that previous instances of extreme market FUD resulted in significant price increases for cryptocurrencies, such as Ethereum’s 48% price increase between March and April 2021.
- What advice does Santiment give to Bitcoin traders regarding BTC supply on exchanges?
- Santiment advises Bitcoin traders to closely monitor the supply of BTC on exchanges, as there has been a notable increase in recent weeks, indicating traders‘ motivation to secure small profits.
- Which synthetic asset issuer has witnessed a rebound in value during September?
- Synthetix (SNX) has witnessed a slight rebound in value during September, with a 21% increase.
- How much have crypto traders positioned in buy orders?
- Crypto traders have positioned buy orders for approximately $584 million worth of Ethereum (ETH) in anticipation of a positive momentum shift. These buy orders exceed existing sell orders by nearly 50%.
