A few altcoins have diverged from the market with sharp rallies. Here’s whether they can sustain the momentum, according to social media data.
Social Media Has Started Paying Attention To These Altcoins
In a new insight post, the analytics firm Santiment has talked about some altcoins that have recently diverged from the rest of the market with notable price surges.
Here are the coins in question and how their monthly returns have looked:
As is visible above, these altcoins have managed to deliver sizeable profits during a period where the major assets have printed losses. Bitcoin (BTC), for instance, is down around 2% on this timeframe. Among the listed alts, two are particularly prominent in terms of market cap size: Hyperliquid (HYPE) and WhiteBIT Token (WBT). The former has seen a rise of 51.6% and the latter 59.2%.
Now, can these coins sustain their runs? One hint can come from social media data. Santiment has shared two indicators related to social media: Social Dominance and Positive/Negative Sentiment. The first metric, the Social Dominance, tells us about what part of social media discussions related to the top 100 assets a particular cryptocurrency is responsible for.
The indicator determines this by comparing the asset’s Social Volume, a count of the posts/messages/threads on social media containing unique mentions of the coin, with the combined Social Volume of the top 100 cryptocurrencies.
The other metric of interest, the Positive/Negative Sentiment, basically measures the ratio between the positive and negative sentiments present among the social media users.
To determine this, the indicator runs the Social Volume of an asset through a machine-learning model to distinguish between bullish and bearish comments. It then takes the ratio of the two to find the net situation on these platforms.
First, here is a chart that shows the trend in both of these metrics for Hyperliquid:
As displayed in the above graph, the Social Dominance of HYPE peaked at 1.5% in May, but has gone down since then, despite the price continuing its surge. Nonetheless, the indicator has remained at 1.25%, which is still a notable level. Alongside this high attention, the Positive/Negative Sentiment has stayed at around 3.75, which suggests social media users have been making almost 4 times as many bullish comments related to the altcoin as bearish ones.
Historically, altcoins have tended to move against the crowd’s expectations, so an excessive sentiment in either direction has often proven to be a reversal signal. This means that an overly bullish mood can actually lead to a top for an asset. Considering this, HYPE may not be in the best position for continuing its surge, at least from the perspective of sentiment.
While Hyperliquid has seen a bit of a cooldown in Social Dominance, WhiteBIT Token has just seen a huge surge.
That said, WBT’s Positive/Negative Sentiment hasn’t budged alongside this Social Dominance explosion, although it remains at a notable level of 3.07. Based on the trend, the analytics firm thinks, “we likely will see its price make a second run after its local top that just occurred on June 15th unless FOMO begins to make an appearance.”
HYPE Price
Hyperliquid has seen a sharp decline since its peak on Monday as its price has come down to $39, a potential sign that the social media hype may already be biting back.
