The cryptocurrency market has seen a recent rebound, and data shows that Cardano (ADA) is witnessing a stronger bullish sentiment compared to top cryptocurrencies like Bitcoin (BTC) and XRP.
Cardano Sentiment Reaches Highest Level of 2024
According to analytics firm Santiment, the “Weighted Sentiment” indicator for Cardano (ADA) has reached its highest level so far in 2024. This metric is based on two other indicators – Sentiment Balance and Social Volume.
The Sentiment Balance measures the net positive or negative sentiment expressed about a cryptocurrency on social media platforms. The Social Volume tracks the total number of posts discussing the asset.
The Weighted Sentiment takes these two metrics and provides a combined score that reflects both the net sentiment and the level of social media discussion around the crypto.
You May Also Like: Why Cardano (ADA) Founder Charles Hoskinson Announces $1 Million Bug Bounty Challenge
ADA Outperforms Top Cryptos in Weighted Sentiment Metric
The data reveals that Cardano’s Weighted Sentiment currently stands at 1.69, significantly higher than Ethereum’s 0.80, which is the second-highest among the top five cryptocurrencies including BTC, BNB, and XRP.
This indicates that not only is the net sentiment around Cardano (ADA) highly positive, but there is also a large volume of social media discussion surrounding the asset. In contrast, Bitcoin and XRP have relatively milder positive sentiment levels.
While the strong bullish sentiment for Cardano (ADA) suggests robust investor confidence, the analysts caution that excessive hype can sometimes be a bearish signal. Highly bullish assets like Cardano and Ethereum may not be in the best position to see further price surges in the near term.
On the other hand, the relatively lower sentiment for Bitcoin and XRP could potentially work in their favor, as they may have more room for growth in the current market conditions.
Cardano (ADA) has already observed a price jump of 1.4% over the last 24 hours, taking ADA price to $0.344. However, positive sentiment may not necessarily translate into a sustained rally.
The flaw with the Sentiment Balance metric is that it may not always be representative of the actual sentiment shared by the majority of users, as it only reflects the mentality of those who have participated in the discussion.
The Weighted Sentiment, on the other hand, takes into account both the Sentiment Balance and the Social Volume, providing a more holistic view of the overall sentiment around a cryptocurrency.
Related Post: Cardano (ADA) Chang Hard Fork: Urgent Push for Upgrade Compliance by Intersect
