With Bitcoin at $16,000, Will Solana, XRP Lead Bullish Rallies?

Lavina Daryanani
Source: The Economic Times

Coins from the market managed to marginally step out of the bearish woods on Tuesday. The cumulative value of all cryptos elevated by roughly 2% in 24 hours and stood at $836.69 billion at press time.

Data from Santiment revealed that market participants were more inclined towards the bullish side of the spectrum than the bearish side. As illustrated below, over the past week, an average of 16,783 mentions [blue] pertaining to “buy, buying, bought, bottom, bottomed, and bullish” were made. On the other hand, social volume encapsulating keywords like “sell, selling, sold, top, topped, and bearish” stood comparatively subsided at 6,953 [red].

According to Santiment, the “euphoric sentiment” was “high” today, with traders showing a “bias” towards the market “turning positive” soon. Quantifying the same, the analytics platform tweeted,

Euphoric sentiment has surged to a 3-month high.

Elucidating on what triggered the flip in sentiment, Santiment noted,

Markets have mostly been favoring altcoins over the past week, with many returning double-digit positive return percentages. This has been enough to get traders excited for a crypto turnaround.”

Indeed, the past week belonged to altcoins. With the largest crypto remaining rangebound, assets like Fantom [30%], Chainlink [24%], Solana [22%], Dogecoin [37%], etc. fetched investors double-digit gains.

Institutional Sentiment

Despite the sentiment refinement noted lately, institutions continue to exercise caution. On the whole, digital asset investment products noted outflows totaling $23 million last week. Bitcoin noted substantial negative flows amounting to $10.1 million. On the other hand, BTC short investment products saw inflows totaling $9.2m, highlighting the not-so-positive sentiment.

Ethereum was in a comparatively better position. Highlighting so, CoinShares’ latest weekly report noted,

Ethereum saw minor outflows totaling US$6m while the large inflows into short products seen the previous week were completely reversed with an outflow of US$15.2m. It is still too early to say this is a positive change in sentiment.

Most Alts like XRP, BNB, MATIC, and XTZ noted negative flows [$0.5 million, $0.3 million, $0.3 million, and $0.2 million respectively]. Solana, however, stood apart and noted a minor inflow worth $0.1 million.

Source: CoinShares