This day seemingly keeps getting better and better for all cryptocurrency markets. More specifically, the Stellar price is also making some notable gains as we speak, which is rather interesting. Thanks to a solid 18% gain, the Stellar price is back up to $0.45. It now seems like ages ago since we last saw this value, even though the Stellar price hit that same value just four days ago.
STELLAR PRICE IS SURGING QUICKLY
It is always interesting to see how different cryptocurrency markets evolve. Over the past six weeks, most markets have suffered major losses, and it seems this trend is not entirely over just yet. At the same time, we see some markets note some major gains, which can only be considered to be a good thing.With the Stellar price now heading back to $0.45 and potentially higher, things will get a lot more exciting from here on out. This does not necessarily mean we will see more Stellar price gains in the future, though, but things may turn out in a positive manner for all we know.
With a solid 18% gain in USD value over the past 24 hours, the Stellar price has risen from $0.38 all the way to $0.452 without meeting too much resistance. it is only a matter of time until things turn back in the right direction for all cryptocurrency markets. Right now, there is still over $300bn in total market cap waiting to be recovered throughout 2018. If the Stellar price is any indication, things may turn around rather quickly as we speak.
It is also worth noting the Stellar price represents a 10.16% gain over Bitcoin. Even though the Bitcoin value has been on the increase as well in the past few hours, it’s good to see alternative currencies note gains in their respective BTC ratio right now. In the case of Stellar, the BTC ratio now sits at 0.000049 BTC, which is more than respectable. There will be some interesting developments affecting all markets in the future, by the look of things.
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Trend Analysis Reveals the Most Loved and Hated Cryptocurrencies</h1>
For investors trying to predict market movements, the more data that can be analyzed the better. Trend analysis and fundamental analysis are a starting point, but there are other clues scattered across the web which lie outwith conventional search parameters. One of these, social analysis, involves discerning the general sentiment towards cryptocurrencies on public networks such as Twitter. One bot does just that on an hourly basis, revealing which coins are feeling the love and which are receiving hate.
Social Analysis Reveals Market Sentiment
Twitter is full of bots. While some of of them are malevolent, spamming users and spreading fake news, others are extremely nifty. Watson’s Reports is a bot that provides hourly updates on what people are saying about cryptocurrencies on Twitter. The trend analysis bot, developed by data analyst Crypto Watson, highlights the most talked about cryptocurrencies. It also analyzes the prevailing sentiment to reveal which coins have the most positive and negative mentions.
The most recent hourly at the time of publication shows bitcoin predictably out in front with over 3,000 mentions. Waves (1,491), ethereum (1,407), and ripple (1,030) follow. Below that come the likes of litecoin, neo, verge, tron, stellar, and bitcoin cash. While bitcoin invariably leads, other cryptos enter and exit the top 10 depending on whether they’re in the news. But just because someone’s talking about a cryptocurrency doesn’t mean they’re holding it or planning to invest. In fact, several of the most popular coins are also the most hated.
A research paper published in December called “Market Sentiment Helps Explain the Price of Bitcoin” examines this trend in more detail. Its author concludes:
By combining the concept of Metcalfe’s law the variation of the BTC price can be accurately explained by using a market sentiment volume about BTC that is positively scored on social networks. The assumption is that the price of BTC is predominantly a result of the demand-supply balance of buyers and sellers, which is greatly influenced by market sentiment. It is likely that market sentiment is also highly affected by the price itself, forming a circular and bidirectional reflexivity.
It’s Better to Be Hated Than Ignored
According to the Watson’s Reports bot, bitcoin has the highest amount of negative hourly sentiment (11.5%). That’s to be expected given bitcoin’s dominance; haters gonna hate after all. A look at the runners-up in the positive and negative categories reveals some interesting entrants. The most positively mentioned coins are sia (20.6%), zclassic (19.5%), and digibyte (18.7%). Ubiq and stellar complete the top five.
In terms of negativity, after bitcoin it’s ethereum (6.1%), litecoin (5.3%), bitcoin cash (4.9%), and tenx (4.6%). Because the bot updates its analysis each hour, these trends are quite dynamic, with many cryptocurrencies, save for bitcoin, regularly trading places. Whether social analysis is an arbiter of market trends is a matter for investors to agonize over.
A Whole Lotta Bots
Public databases such as Twitter, which provide gigabytes of scrapable data in real-time, are ideal for bots to trawl. Coders have developed bots to analyze an investor’s returns if they were to automatically buy and sell on the advice of Twitter traders, for example. Other bots will tweet when the buy volume for a coin suddenly increases, or in the case of Telegram bot Crypler when a coin is added to an exchange. As AI and the use of bots increases, traders will increasingly take their signals from computers. For the time being, at least, the best traders still rely on a good dose of intuition and gut instinct, attributes which no bot can detect.
Do you think social media analysis can indicate imminent price movements? Let us know in the comments section below.
Images courtesy of Shutterstock, and Watson’s Reports.
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With $281.84m in 24-hour trading volume, the demand for Stellar is anything overwhelming right now. The same still applies to all other cryptocurrency markets, as a lot of markets are still down by quite a margin as of right now. When this trading volume picks up for all cryptocurrencies again, things will get pretty interesting moving forward. Stellar has never had the multi-billion Dollar volume, though, and the current number is more than fair for this particular market.
It does appear South Korea is pushing the Stellar trading volume as of right now. Upbit’s XLM/KRW pair represents over 40.5% of all trading volume in the past 24 hours, which is more than the rest of the top five combined. There’s also only one fiat currency pair in the entire top five right now, and the South Korean volume doesn’t impact any international markets whatsoever. Whether or not we will see any Western markets show any interest in XLM over the coming hours, remains to be seen, though. For now, it seems all other exchanges are well below the $30m threshold right now, but things can always change in quick succession in the cryptocurrency world.
For now, it remains to be seen what the next few days will bring for the Stellar price. Although the current trend seems to indicate things will only get better from here on out, there is no reason to think cryptocurrency markets are out of the woods just yet. For all we know, this is the prelude of another big drop in prices. We can only hope that is not the case, though, as there has been enough market volatility to contend with already.
Photo via Pixabay