One factor is the increased potential for cryptocurrency prices to rise, according to Analytics Santiment platform

Cryptocurrency analytics platform Santiment says a key factor is increasing the odds that digital assets will see a rebound.

In a new topic on the social media platform X, the market intelligence company He says Excessive bearish sentiment by investors increases the likelihood that digital assets will spark a rally, similar to what we saw in the fourth quarter of last year.

“Cryptocurrencies have been a slight disappointment for traders over the past week, and we have seen higher than usual signs of selling interest. Just as we saw throughout the Q4 bull rally, when the crowd starts to get too bearish, a price rally becomes much more likely.”

Santiment’s chart shows that signals on social media to sell digital assets spiked on December 4th before the markets exploded. It also shows a spike in social media selling on January 8th, which could herald another market-wide rally.

Santiment goes on Note The growing number of cryptocurrency wallets related to major assets such as Bitcoin (Bitcoin), Ethereum (Ethereum), XRPCardano (Ada) and Dogecoin (Doug) is also a good sign.

“BTC: +102,000 wallets.

Ethereum: +645,000 wallets.

XRP: +58,000 wallets.

ADA: +2800 wallet.

Dog: +29,000 wallet.

Link: -3300 wallet.

If portfolios rise quickly, the community feels comfortable with the project in the long term. If portfolios decline, there may be some excess FUD (fear, uncertainty, and doubt) that signals a buying opportunity (as opposed to a panicked public).”

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