Social sentiment has recently emerged as an important metric in showing a price trend or rally for top altcoins. Based on social sentiment over the past week, XRP has experienced a largely negative period, which has been going on for over a month or so.
Chainlink’s social sentiment has recently turned negative and reached its lowest level since October 2020, while DOT’s social sensitivity recently dropped to a double peak and ADA is now neutral.
Here’s why price trend may reverse for XRP, LINK, DOT and ADA
According to CoinMarketCap’s listing, XRP may have dropped from # 3 to # 7, but the price has surged about 6% last week. As the trading volume drops, large HODLers are likely to accumulate XRP, and this could be the start of a price rally for the asset, which are the early stages of low-circulating supply. Despite fear of XRP being replaced by an alternative, trading activity has continued and HODLers are not yet selling without any sign of gradual selling.
Stock markets are teeming with the occasional drop, but the price has now hovered above $ 0.4 for more than 2 months since January 31st. Currently traders may not be accumulating, but a consolidation phase has not been triggered either. Waiting and watching more is a positive sign. However, historically such situations were followed by a sell-off and a price drop. A drop below $ 0.4 could signal the beginning of a gradual sell, according to the chart.
LINK’s new integrations, which are around 40 during March 2021, became the main determinant of the asset price. Another measure that greatly affects the price is liquidity or LINK hitting the stock markets. According to data from Glassnode, the number of stock exchange deposits (7-day MA) reached 19.36, the lowest level in 5 months. These are the 5-month lowest signals that LINK is accumulating. This narrative is supported by this metric.
📈 $LINK Percent Supply Held by Top 1% Addresses just reached a 3-year high of 83.786%
Previous 3-year high of 83.740% was observed on 28 March 2021
— glassnode alerts (@glassnodealerts) April 2, 2021
The accumulation is clear. Current price action for LINK could result in an ETH-led (already on the rise) price rally, and LINK could follow a new ATH next week and reach new highs.