Crypto Market Sentiment Climbs; XRP is Week's Loser but Among Day's Winners
In the very last week of 2020, as the market was still rallying, the market sentiment climbed, but not far from where it stood a week before. The combined moving 7-day average crypto market sentiment score (sentscore) for the top 10 coins went up from 5.43 recorded last Monday to 5.59 recorded today, as is shown by the data provided by crypto market sentiment analysis service Omenics.
7 out of the top 10 coins have seen their respective sentscores increase over the past seven days. Polkadot (DOT) - one of the coins with the largest drops on an otherwise all-red list last week - has overthrown binance coin (BNB) after two consecutive weeks of reign, taking the top for itself. Compared to DOT's 11.2% rise, the second place is not far either, taken by USD coin (USDC) and its sentscore rise of 9.1%.
Ethereum (ETH) and cardano (ADA) went up 6.9% and 6.2%, respectively, while tether (USDT) and bitcoin (BTC) increased 4.9% and 4.4%, respectively. The coin whose score went up the least is chainlink (LINK) with 2.5%.
That said, the situation in the positive zone finally changed, with it getting another resident: BTC and ETH are now joined by DOT. While three other coins have scores above 5, with ADA standing on the verge of the positive zone, four have sentscores lower than 5, with XRP sitting on the very verge of the negative zone.
Sentiment change among the top 10 coins*:
Interpreting the sentscore’s scale:
- 0 to 2.5: very negative
- 2 to 3.9: somewhat negative zone
- 4 to 5.9: neutral zone
- 6 to 7.49: somewhat positive zone
- 7.5 to 10: very positive
In the last 24 hours alone, the overall sentscore has moved quite close to the positive zone. The combined moving 24-hour average sentscore for the top 10 coins is now 5.92, compared to last week's 5.56. The improvement is seen across the board. Seven of the ten coins are green, with LINK and - interestingly - XRP leading the list, both going up more than 11%. In comparison, the other coins' scores increased between 0.2% (BTC) and 4.3% (BNB). The three coins that are red, however, are USDC, DOT, and ETH, having dropped 3%, 1.3%, and 0.2%, respectively. Furthermore, five coins are in the positive zone, with only USDC and XRP below the score of 5 (4.8 and 4.6, respectively).
Daily Bitcoin sentscore change in the past month:
Meanwhile, the situation is somewhat redder, so to say, among the remaining 26 coins tracked by Omenics, those outside the top 10 list. Twelve of these are green, meaning that the scores of the majority of the coins have dropped over the past week. REN with a rise of 17.6% leads among the green coins, sitting at the score of 5.9. And while they went up less then REN, three coins are already in the positive zone: synthetix (SNX), algorand (ALGO), and AAVE. But, while there are two more coins in the positive zone this time around, there are also those who dropped into the negative zone: tezos (XTZ) and zcash (ZEC).
* - Methodology:
Omenics measures the market sentiment by calculating the sentscore, which aggregates the sentiment from news, social media, technical analysis, viral trends, and coin fundamentals-based upon their proprietary algorithms.
As their website explains, "Omenics aggregates trending news articles and viral social media posts into an all-in-one data platform, where you can also analyze content sentiment," later adding, "Omenics combines the 2 sentiment indicators from news and social media with 3 additional verticals for technical analysis, coin fundamentals, and buzz, resulting in the sentscore which reports a general outlook for each coin." For now, they are rating 36 cryptocurrencies.