Analytics Firm Santiment Issues Crypto Market Warning, Says To ‘Tread Carefully’ After Vital Metric Flashes Red

Analytics Firm Santiment Issues Crypto Market Warning, Says To ‘Tread Carefully’ After Vital Metric Flashes Red

Crypto analytics platform Santiment is sending out a warning on the heels of a moderate altcoin rally recorded over the past couple of days.

Santiment says that a recent increase in the number of positive terms on social media platforms could herald a bearish reversal.

According to Santiment, euphoria and fear of missing out (FOMO) have reached a two-month high and this is usually an indication that a local top is in. High levels of the opposite sentiment – fear, uncertainty and doubt (FUD) – usually signal the reaching of a bottom, per Santiment.

“This week’s modest crypto rally, particularly for altcoins, has led to a spike in social media mentions of terms like ‘buy’, ‘buying’, ‘bottom’, and ‘bullish’.

Historically, these positive terms are signs of euphoria & FOMO. Tread carefully at this spot.”

Source: Santiment

Some of the altcoins that have soared since Sunday include Solana (SOL), which, at time of writing is up 43% from $9.83 to $14.07 and the decentralized autonomous organization (DAO) of liquid staking protocol Lido DAO (LDO) is up 49% from $0.951 to $1.42.

On Ethereum (ETH), Santiment says that while the second-largest crypto asset by market cap has only moved up slightly, whale interest has risen to a three-week high.

“As altcoins have heated up, Ethereum quietly rebounded back above $1,260 for the first time in 3 weeks. Though not quite at the level of the big whale dip buys on December 16th (ETH’s local price bottom), whales are showing increased interest again.”

Source: Santiment

Ethereum, which reached a local low of $1,168 on December 16th, is trading at $1,250 at time of writing.

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