Euphoria and Fear: Assets to Keep an Eye On
2022 hasn't been pleasant for the majority of crypto hodlers and traders. In fact, even bears who have been betting that markets would drop have had a tough time navigating exactly when to open and close their positions throughout the year. It can be argued that the massive drop in market cap values in 2022 have been even more unpredictable than the massive ascensions in 2020 and 2021.
Regardless, we're in a spot now where several cryptocurrencies are seeing some rising optimism, while others are being ridden off as dead. Remember that from our backtesting over the years, the more positive the mainstream crowd is about an asset, the LESS likely it is to rise. And the more the crowd believes a coin is "done", the MORE likely it is to rise.
Let's take a look at a few assets that are currently sitting on each side of the sentiment extremes:
🥳 Crowd Very Bullish:
Uniswap has had a positive sentiment for eight straight weeks now, and the euphoria surrounding the popular DeFi asset really began to peak at the end of September. Although the price has been recovering despite the positivity, this isn't the most encouraging thing to see if we're awaiting a full UNI recovery back to April prices and beyond.
The Graph ($GRT):
The Graph has had a very quiet year, but it saw its biggest euphoric spike of 2022 at the end of September. Currently, it is still seeing a higher than average sentiment. GRT would be set up ideally if it continued to see the negative sentiment pattern that was prevailing in August and most of September.
Hex has seen a negative crowd sentiment throughout 2022. However, this week has marked the most positive the crypto community has been toward the asset since early May (5 months ago). This isn't ideal for those who have been patiently awaiting a HEX recovery.
😠 Crowd Very Bearish:
Solana is not very highly regarded at all these days after really falling off from its $258.93 all-time high one year ago. Negative sentiment toward SOL has fallen back to its lowest levels since late July, and there hasn't been a ton of price reaction yet. But with this much FUD, it can be considered a positive sign.
Binance Coin ($BNB)
Binance's native token saw its most negative sentiment last week as well, like Solana. The price, unsurprisingly, has been climbing ever since.
Tron's price action has been a bit of a roller coaster ever since it had its massive crash in mid-June. Note how the 5 weeks following that crash, the crowd was extremely negative toward TRX, and the price recovered. Well, with extremely negative sentiment happening once again, we could see a similar pattern.
Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.
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