Alternative currencies give traders optimism despite price stagnation

Despite recent price stagnation, cryptocurrency traders remain bullish on several prominent altcoins. Analysis from Santiment, a leading crypto market news platform, reveals some interesting sentiment trends.

According to Brian Quinlivan, principal analyst at Santiment, the data measures the proportions of positive and negative comments, providing valuable insight into market sentiment.

Altcoin traders remain optimistic

Solana (GROUND), for example, shows significantly high bullish sentiment with a positive to negative holding ratio. This optimism persists even as Ethereum, its main competitor, attracts more attention.

Cryptocurrency traders continue to express confidence in Solana's potential for another major rally despite its recent lackluster price performance.

Likewise, Ripple showed (XRP) “Lukewarm sentiment” with a positive/negative ratio of 1.62:1. This suggests that traders have become somewhat impatient with its performance, as is the case with Cardano.

Although this percentage was lower at the start of the year, Quinlivan points out that the decrease in discussion volume indicates a decline in interest over time.

👈Read more: How to deal with the slowdown in the cryptocurrency market

The overall positive sentiment indicates continued interest from altcoin traders.

Meanwhile, Dogecoin maintains (DOGE), the largest coin by market capitalization, has a positive/negative ratio of 2.06:1. Dogecoin sentiment, known for its volatility, often reflects general attitudes toward meme coins rather than its specific fundamentals.

Despite the slight price rise, the overall positive sentiment indicates continued interest from altcoin traders.

In the case of the Shiba Inu (SHIB), after Dogecoin, as the second largest meme coin, has a positive/negative ratio of 2.09:1. This sustained positive sentiment over seven weeks is remarkable, given that the coin's price has not rebounded since the beginning of March.

The recent death of the real Shiba Inu, who inspired the piece, may have temporarily heightened the sentiment.

Cardano Offers (ADAAnother interesting case with high bullish sentiment despite being one of the bad performers in 2024. With a positive/negative ratio of 3.42:, traders remain optimistic about Cardano's prospects, showing what could be considered false optimism.

According to Quinlivan, this gap between sentiment and performance raises questions about future price movements.

👈Read more: The 4 Most Important Technical Analysis Tools for Cryptocurrencies and Stocks in 2024

Quinlivan confirms on It is important to monitor these sentiment trends because they can indicate potential highs or lows in price. High ratios of positive and negative comments often precede sentiment-driven price spikes, while low ratios can indicate troughs.

"The higher the ratio of positive to negative comments, the more likely we are to see a sentiment-driven price top. At the other extreme, a lower ratio can cause a sentiment-driven bottom," said Quinlivan.

In conclusion, despite price stagnation, traders remain optimistic about many altcoins. Solana, Dogecoin and Shiba Inu, in particular, show strong positive sentiment, while XRP and Cardano show more moderate but still bullish outlooks.