Crypto traders turning to Cardano, Tron and One Ethereum rival, Santiment says – but there’s a catch
Crypto analytics platform Santiment warns that three cryptoassets are witnessing negative bias due to their poor price performance so far this year.
Sentiment says that traders are starting to “turn on” smart contract enabled blockchains Cardano (ADA), Tron (TRX) and EOS (EOS).
According to the crypto analysis platform, such a negative bias is historically a sign that the bottom may be near.
“Cardano, EOS, and Tron are three popular assets that have gotten the trading crowd fired up. Price performance has been particularly tough for these three in 2022, and the capitulation could soon lead to a rally to get them back.”
In contrast to the outlook for the aforementioned smart contract-enabled blockchains, Santiment says that decentralized blockchain oracle Chainlink (LINK), layer-2 scaling solution Polygon (MATIC) and decentralized finance (DeFi) platform Aave (AAVE) could have topped out in the near term.
However, Santiment says that if Bitcoin (BTC)’s key support level of $20,000 holds, Chainlink, Polygon and Aave could continue their upward trajectory.
“The early week price increases have led to high profit taking levels for Chainlink, Polygon and Aave. Usually these could be some short-term top signals, but if accompanied by stability from Bitcoin staying above $20,000, there could be room for growth.”
We turn to the second largest crypto asset by market capitalization, Santiment says that the supply of Ethereum (ETH) on exchanges has fallen to levels last seen before the height of the uncertainty surrounding the transition to a proof of stake model.
“Ethereum’s amount of new addresses being created hovers around 70,000 per day again, the highest since early August. And after quite a bit of uncertainty surrounding the mid-September merger, the supply of ETH on exchanges has dropped back to 14.6%.”
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