There is a new ray of optimism in the unpredictable world of cryptocurrency. Digital assets are showing symptoms of possible price increases despite an increasing shroud of uncertainty, according to latest data.
Santiment’s recent analysis has shed light on the dominance of fear, uncertainty, and doubt (FUD) sentiments on social media platforms. Interestingly, these negative sentiments currently outweigh the positive ones usually associated with a bull market. Santiment believes that this surge in FUD might actually be a precursor to price increases in the crypto sphere.
This phenomenon isn’t entirely new. Historical trends show a similar pattern around March 8, when extreme FUD was triggered by the USDC de-peg and Silicon Valley Bank failure. In response, Ethereum’s price shot up by a staggering 48%, rising from $1,430 to $2,120 between March 11 and April 17.
Santiment’s advice for Bitcoin (BTC) traders is to closely monitor the supply of BTC on exchanges, which has witnessed a notable uptick in recent weeks. The firm noted that the supply of BTC on exchanges has increased by 3.1% over a two-week period, suggesting that traders are eager to secure small profits.
Crypto traders have also been positioning themselves strategically in anticipation of a positive momentum shift. Data aggregated from 21 crypto exchanges reveals active purchase orders for 643,000 ETH, totaling approximately $584 million. These buy orders surpass existing sell orders for 431,000 ETH by nearly 50%.
Despite the prevailing bearish sentiment, the Exchange On-chain Market Depth chart indicates a market demand for ETH that exceeds supply by 211,500 coins. This substantial support for Ethereum lies in the $1,500 to $1,600 range.
After nearly two months of decline, the majority of crypto investors are still expressing bearish sentiment. However, Santiment’s insights suggest that this wave of uncertainty might be a precursor to positive price movements, offering a glimmer of hope in an otherwise turbulent crypto landscape. Investors and traders are advised to keep a close eye on these emerging trends in the crypto market.