- Storj, Illuvium, Litecoin and DYDX note extreme negative sentiment from market participants.
- Analysts state that increase in negative sentiment is correlated with likelihood of price bounce in altcoins.
- On-chain metrics support bullish outlook on LTC, STORJ, ILV and DYDX.
As the Christmas holidays approach, analysts at Santiment comment on the rising negative sentiment among traders for a few altcoins. Previously, analysts have noted negative sentiment acted as a driver for price bounce in altcoins and expect a similar outcome this cycle.
Also read: SEC offered to announce XRP is a security, three years ago: Ripple CLO spills the truth
Assets most likely to observe a price rally
According to analysts at crypto intelligence tracker Santiment, crypto traders showed increasingly negative sentiment towards assets: Storj (STORJ), Illuvium (ILV), Litecoin (LTC) and DYDX, heading into Christmas holidays. The data is gathered from discussions on social media platforms like X (formerly Twitter.)
While typically negative sentiment does not support a bullish thesis, analysts have recorded instances where a price bounce is preceded by rise in negative sentiment among market participants. If history repeats, STORJ, ILV, LTC and DYDX prices are most likely to see a recovery in the short term.
Negative sentiment among traders. Source: Santiment
On-chain metrics support bullish outlook
STORJ supply on exchanges has dropped from its December peak of 20.94% (of the total supply) to 15.86% on Saturday. A decrease in supply of the asset on exchanges is correlated with reduced selling pressure and room for price recovery in STORJ.
 [13.46.18, 23 Dec, 2023]-638389166504807112.png)
STORJ supply on exchanges and price. Source: Santiment
In the case of Illuvium, there is a decrease in profit-taking activities of traders, starting December 14. Prior to this date, traders engaged in profit-booking on ILV as the asset’s price climbed. A reduction in profit-booking supports a bullish thesis for ILV price.
 [13.47.41, 23 Dec, 2023]-638389167010582195.png)
Network Realized Profit/Loss. Source: Santiment
The active addresses and volume noted a consistent rise alongside Litecoin price rally, in December. LTC price is likely to recover in the short term in line with the bullish outlook of its on-chain metrics on Santiment.
 [13.50.11, 23 Dec, 2023]-638389167243462434.png)
Active addresses and volume. Source: Santiment
DYDX network growth spikes correspond with price increase in the token. With a considerable increase in the network growth metric, the token is expected to begin its price recovery.
 [13.51.48, 23 Dec, 2023]-638389167476561928.png)
DYDX network growth. Source: Santiment
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