As the Christmas holiday approaches, the crypto market is expected to experience a “Santa Claus rally,” which traditionally signifies a rise in market activity. However, on-chain data suggests that not all altcoins may participate in this rally, with some showing signs of potential decline.
On-chain data provider Santiment has issued a warning about the negative sentiment surrounding certain altcoins, suggesting that coins like Storj (STORJ), Illuvium (ILV), Litecoin (LTC), and dYdX (DYDX) are showing bearish signals. These altcoins are particularly highlighted due to their presence in the negative zone of the Weighted Sentiment metric.
According to Santiment’s Weighted Sentiment metric, STORJ, ILV, LTC, and DYDX are currently in the negative territory. Historically, an altcoin’s presence in this zone has been considered a precursor to negative price movements.
Recent data shows that STORJ has seen a 9.76% decrease in the last 24 hours, trading at $0.8669. Meanwhile, ILV has risen by 0.19% to $95.48, LTC has increased by 1.21% to $72.02, and DYDX has jumped by 3.90% to $3.12.
The Weighted Sentiment metric by Santiment is designed to gauge market participants’ discussions about a particular cryptocurrency. A positive score on this metric suggests that the crypto is being actively talked about, which could lead to an increase in its price.
Conversely, if a cryptocurrency’s Weighted Sentiment metric is in the negative zone, it indicates a lack of discussion and interest from market participants. This could result in the asset’s price stagnating or even declining due to low interest.