The crypto market seems to be gaining after several days in the red. Most major cryptos have seen significant gains in the last few hours. Majority of the top 20 coins in the market are green with some of them experiencing gains of over 10%. Does this mean the bear run is coming to an end?
Well, it might be too early to draw such conclusions considering that the market has been behaving this way for some time now. Cycles of small rallies that are followed by weeks in the red have become common place.
However, we can gauge market sentiment to help determine the strength of the current rally. One effective way to do this is to track what people are saying about individual cryptos on online forums such as Reddit and other crypto related websites on the internet. The more positive the sentiment, the better it is, to tell the possible market direction. Let’s use this approach to determine the current sentiment of Bitcoin (BTC), Nano (Nano) and Dash (Dash).
Bitcoin is currently trading at $6800. It has recovered some of the losses it made when it dropped to around $6200 a few days ago. Momentum seems to be building back up, with $6500 acting as major support. A drop below this level could see the price fall to under $6000 in the coming week.
However, based on current sentiment, bitcoin might break back above $7000. In the last 24 hours, bitcoin has been mentioned over 400 times on different platforms. Out of these mentions, 70% of them are positive, indicating that investors are bullish on this crypto at the moment.
Like most other major cryptos, Dash has seen sustained selling pressure in the last couple of weeks, dropping to lows of under $270. However, this crypto has rallied in the last 24 hours, and is now up by more 6%. To try and determine whether this rally will sustain, we need to look at the current market sentiment around this crypto in the last 24 hours.
In this timeframe, Dash has been mentioned on different platforms some 18 times. Out of these mentions, 94% of them are positive, signaling to a surge in optimism. This could be an indication that Dash has bottomed out, and is poised for a bullish rally in coming days.
NEM (XEM) has had a series of good news in the past few days, but has been held back by the overall bearish sentiment in the entire market. However, that sentiment seems to be changing in the last 24 hours, with this crypto gaining by over 4%.
Based on sentiment analysis, this crypto has been mentioned some 16 times today on different forums. Out of these, 62.5% of them are positive mentions. This could be an indication that investors are confident that this crypto will gain in value in coming days. However, there is still a high level of negative sentiment standing at 37.5%. This could be a signal that the current rally is only a correction before a continuation of the downtrend.