If we are to believe the analysts of Santiment, the end of the current correction is in sight. After the SEC announced on Monday that it was suing Binance and Coinbase, labeling several large projects as securities for US law and regulation.
It wasn’t long after that before the market started to collapse, but according to Santiment, that’s almost over now.
The discussion cools down
Santiment bases this analysis on the use of different terms on social media platforms. They actually see certain forms of discussion cooling down and believe that the dip is heading towards a bottom based on that.
“Crypto discussions on Twitter, Telegram, Discord, Reddit and 4Chan are declining in volume as the market loses interest. Looking at these declines, it seems to be a sign that the markets are closer to capitulation, which is normally bullish,” said Santiment.
Furthermore, Santiment notes that the amount of Ethereum at the exchanges is heading towards new record lows.
In theory, that means the potential for new waves of sales is falling and we may have seen the worst for the number two in the market.
Volatile weekend
Despite the fact that the amount of Ethereum on the exchanges is at its lowest level in ages, it has been quite a volatile weekend. At the time of writing, Ethereum is even down 5.14 percent over the past 24 hours.
Bitcoin is doing it with a decline of only 2.62 percent a lot better. Coins that are doing really badly are BNB, Cardano, Solana and Polygon. These projects are under severe pressure due to the fact that the SEC classified them as securities.
There is a chance that these coins will disappear from a lot of exchanges for that reason and will therefore lose a lot of their price value. According to Santiment, however, it should be over soon, because interest on the socials has now reached an all-time low.