On-chain analytics firm Santiment evaluated the conversations on social media and the connection of the recent rise. Today, some of the top 10 altcoins are on the rise amid SEC lawsuits. Analysis shows that there is an interesting link between social media calls to ‘buy from the bottom’ and bullishness.
Altcoin market recovers: Santiment draws attention to investor interest
Bitcoin, ETH, BNB, SOL and the overall market set local bottoms, accompanied by the week’s SEC lawsuits. Amid the ongoing news feed, a number of altcoins, primarily BTC, are on the rise. Especially XRP and DOGE price gained more than 3.5% compared to the last 24 hours. In the same period, BTC and ETH are recovering by 3.5% and 2.6%, respectively.
‘The rise came when investments gave up’
According to on-chain analytics firm Santiment, divergent investor behavior is behind the surprising recovery. Investor sentiment analyzes revealed that market players tend to view declines as opportunities. But, according to Santiment, the real rise began when investors gave up.
📈 As there was increased crowd #buythedip interest as #crypto prices plummeted yesterday, it was shortly after the crowd gave up when prices began to soar. Avoiding the mainstream hype is a typical strategy that contrarian traders can take advantage of. https://t.co/GBNy8U3aW3 pic.twitter.com/El2RfI6N7u
— Santiment (@santimentfeed) June 6, 2023
Santiment said, “While investors were more interested in buying the dip as crypto prices fell yesterday, the price spike came shortly after investors gave up. “Flaming is a typical strategy that outliers can take advantage of,” he says.
According to the analysis, the real price spike did not come in the midst of social media dips, but shortly after that. The chart below shows “buythedip” posts on Twitter and Reddit and a link to the actual price rise
These altcoins are rising
XRP, Dogecoin and several other cryptocurrencies are posting a rebound after the market witnessed selling pressure yesterday and the previous day as a result of the SEC’s lawsuits against the two largest exchanges, Coinbase and Binance. On Monday, the crypto industry received shocking news that Binance and its CEO, Changpeng “CZ” Zhao, have been sued by the SEC. BTC price fell to $ 25,500 in a short time.
The SEC announced on Tuesday that Binance has filed a second lawsuit against rival Coinbase. Later in the day, he requested a federal court order a temporary restraining order to freeze Binance.US-related assets.
Today we charged Coinbase, Inc. with operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency and for failing to register the offer and sale of its crypto asset staking-as-a-service program.https://t.co/XPG2gDkxtV pic.twitter.com/hCdVMw8B2v
— U.S. Securities and Exchange Commission (@SECGov) June 6, 2023
Surprisingly, the Bitcoin-led crypto market has seen strong gains following the SEC lawsuits. Dogecoin, the eighth largest cryptocurrency, was up 5% on the day. DOGE is currently trading in the $0.06817 region, holding intraday gains of over 2%.
XRP was one of the top earners of the day. The sixth-largest cryptocurrency by market cap gained 5%. It is trading above the $0.5 support at the time of writing.
cryptocoin.comAs we have reported, centralized cryptocurrency exchanges suffered the most from SEC lawsuits.
