Santiment Says Market is Hinting at "Price Bounces" as FUD Dominates
Digital assets are displaying signs of potential price rallies despite growing market uncertainty, new insights provided by crypto analytics firm Santiment show.
In a recent tweet, the firm highlighted the dominance of fear, uncertainty, and doubt (FUD) sentiments on social media platforms, noting that it significantly outweighs positive sentiments associated with a bull market.
Santiment said that while increased FUD typically contributes to a negative market atmosphere, it often precedes price increases for cryptocurrencies.
“With crypto markets continuing its unpredictability, we have seen a big uptick in bearish takes by the crowd here in September. Historically, this is a good thing for patient traders. Probability of price bounces rise after FUD becomes the majority.”
Historical trends show that this phenomenon occurred around March 8, when the USDC de-peg and Silicon Valley Bank failure triggered extreme market FUD. In response, Ethereum price skyrocketed 48% from $1,430 to $2,120 between March 11 and April 17.
In the case of Bitcoin (BTC), Santiment advised traders to closely monitor the supply of BTC on exchanges, which has witnessed a notable uptick in recent weeks.
The firm noted that the supply of BTC on exchanges has increased by 3.1% over a two-week period, suggesting that traders are motivated to secure small profits.
Shifting focus to Synthetix (SNX), Santiment highlighted the notable surge in address interactions, social mentions, and new address creations since mid-July for the synthetic asset issuer.
The market intelligence platform reported that Synthetix has witnessed a slight rebound this month, with a 21% increase in value during September.
Crypto traders have positioned buy orders in anticipation of
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