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As the Christmas holiday on December 25th approaches, a Santa Claus rally is expected in the crypto market. Although the term “Santa Claus rally” suggests a rise in the crypto market, on-chain data indicates that some altcoins may not participate in such a rally.
Weighted Sentiment Metric Issues Warning for These 4 Altcoins
On-chain data provider Santiment warns that sentiment towards certain altcoins is negative as the Christmas holiday approaches, indicating that these altcoins are showing signs of a potential decline. According to the data provider, Storj (STORJ), Illuvium (ILV), Litecoin (LTC), and dYdX (DYDX) stand out as altcoins emitting negative signals in an area of general negative sentiment.
According to Santiment’s Weighted Sentiment metric, STORJ, ILV, LTC, and DYDX are in the negative zone. Historically, an altcoin being in the negative zone is considered a leading indicator of negative price movements.
With current data, STORJ has seen a 9.76% decrease in the last 24 hours, trading at $0.8669. In the same time frame, ILV has increased by 0.19% to $95.48, LTC has risen by 1.21% to $72.02, and DYDX has increased by 3.90% to $3.12.
What is the Weighted Sentiment Metric?
The Weighted Sentiment metric offered by Santiment is used to determine whether market participants are discussing a cryptocurrency. If the metric is positive for a cryptocurrency, it is interpreted that the asset is being talked about, and an increase in its price is expected.
However, if a cryptocurrency’s Weighted Sentiment metric is in the negative zone, it is interpreted that market participants are not discussing the asset and are not showing interest in it. This lack of interest could result in the asset’s price stagnating or even decreasing.
