Increased Social Volumes for Trending Assets
Santiment reports that Solana (+13%), Stacks (+23%), and NEAR Protocol (+17%) are the top trending assets, with social media discussions reaching new heights. Such mainstream attention often triggers FOMO (fear of missing out) and can potentially lead to price tops within the market. As of now, Solana is trading at $89.04, showing an 11.9% increase in the last 24 hours, while NEAR Protocol is trading at $3.42, reflecting a 15.6% surge within the same timeframe.
However, Stacks is currently trading at $1.43, experiencing a 5.7% decline in the last 24 hours.
Warns of Cooling Market and Declining Altcoin Trading Volumes
Santiment also highlights a cooling market, as the trading volume of several altcoins shows a decline. Furthermore, after experiencing significant surges, social media discussions surrounding these altcoins have also decreased, indicating potential market tops.
For instance, during the second week of December, there was a notable increase in hype for larger cap assets like ADA and DOGE, followed by altcoins surging the next week. This pattern, where Bitcoin hype peaks first and is then followed by altcoin peaks, is a common occurrence.
Increase in Exchange Supply of Bitcoin and Mean Dollar Invested Age Metric
Another bearish signal highlighted by Santiment is the increase in Bitcoin’s exchange supply. This increase suggests a potential negative trend. Additionally, Santiment is closely monitoring the mean dollar invested age metric for Bitcoin, which indicates the average age of all tokens on the blockchain weighted by their purchase price. This metric could potentially signal a sudden surge towards the $50,000 level in early 2022.
However, investors are advised to conduct thorough due diligence before making any high-risk investments in Bitcoin, cryptocurrencies, or digital assets. It is important to be aware that all transfers and trades are conducted at one’s own risk, and any potential losses are the responsibility of the individual investor.