Data shows XRP and Ethereum are picking up social volume as investors have seemingly started to lose interest in Bitcoin.

Bitcoin Social Volume Shows Drop, Traders Shift Focus Towards XRP & Ethereum

According to data from the on-chain analytics firm Santiment, BTC’s social volume has decreased since its surge in March. The “social volume” here refers to a metric that tells us about the degree of discussion around a given cryptocurrency that social media users are participating in currently.

The indicator measures this in terms of the total number of text documents (that, is the posts on various social media platforms like Reddit, Telegram, and Twitter) that are making mentions of the asset in question.

Something to keep in mind is that the social volume doesn’t put any weight on the actual amount of discussion taking place inside any post; what this means is that even if a text document mentions the term several times, its contribution towards the metric’s value would still remain just one unit.

The benefit of this restriction is that it provides a better picture of the amount of talk that the coin is receiving from the general user. If the limitation didn’t exist, then a long, isolated post with a large number of references to the cryptocurrency could possibly skew the indicator on its own.

Now, here is a chart that shows the trend in the social volumes of Bitcoin, Ethereum, Binance Coin, XRP, Cardano, and Dogecoin over the past year:

How the social volume of the various assets in the sector has changed in recent days | Source: Santiment on Twitter

As displayed in the above graph, the Bitcoin social volume observed a huge surge in March as the asset’s value first observed a hard plunge and then recovered with a spectacular rally.

Sharp price action like this always brings attention to any cryptocurrency, so it makes sense that social media users started participating in huge amounts of discussion around the coin.

Since topping out in April, however, the asset’s price has been in an overall downtrend. The social volume has also been going in a downward trajectory alongside it, although the indicator has observed a small rise during the recent volatile event.

The high volatility had come as the US SEC had sued Binance and Coinbase, back to back, leading to widespread panic in the market. As mentioned before, it’s not particularly uncommon to see the social volume jump during such rapid swings in price.

Ethereum, XRP, and Binance Coin also saw a spike in discussions related to them during this event, surpassing the levels they have seen during the last few months.

While the volatility obviously has a part to play in this rise, it’s also possible that the slowdown in discussions related to Bitcoin has also contributed to it. It would appear that investors have been gradually losing interest in BTC, and are now shifting their focus towards altcoins such as XRP.

XRP Price

At the time of writing, XRP is trading around $0.5, down 4% in the last week.

Looks like the asset has been moving sideways | Source: XRPUSD on TradingView

Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Santiment.net

MATIC is currently facing increased uncertainty as it has been officially classified as a security by the US Securities and Exchange Commission, as revealed in the recent filing against Binance.

Consequently, the Polygon blockchain token experienced a significant drop of 31% within a week, setting a new record. However, there is some positive news as it has managed to recover, witnessing a promising rebound of over 11% in the last 24 hours.

Source: Coingecko

L2 coins will be the next bullrun coins. Already knew, already confirmed.$SOL $ADA $MATIC and others L1’s got the security stamp. Regulation will kick hard = tight choice of L1/L2 coins. Where will all this money flow to? pic.twitter.com/jw5xpLRA4j

— Zoomer Oracle (@ZoomerOracle) June 5, 2023

MATIC is one of the 13 tokens within the Binance lawsuit to be designated as a security. Polygon Labs, the developer of MATIC, issued a statement on Twitter defending Polygon saying that the network is “developed outside the US, deployed outside the US, and focused to this day on the global community that supports the network.”

This recent lawsuit against Binance was followed up by the SEC’s lawsuit against Coinbase, citing that the company is operating an unregistered exchange in connection with the company’s staking service.

Fear, Uncertainty And Doubt In The Market

With the recent classification of several cryptocurrencies as securities, the market has slid considerably within the past week. Bitcoin, the top cryptocurrency, gained dominance in light of the recent regulatory fillings against Binance and Coinbase.

The other tokens in the list are SOL, ADA, FIL, ATOM, SAND, MANA, ALGO, and COTI. According to the lawsuit, the tokens are listed as investment contracts. This made the SEC label them as securities in accordance with the Howey Test, which is a test to know whether a certain asset is a security or not.

MATIC market cap at $5.8 billion. Chart: TradingView.com

This move by the SEC was in line with its recent actions against the crypto industry. Just this February, the regulatory body cracked down on Kraken’s staking service along with forcing the company to pay $30 million in penalties for the violations.

If the mentioned tokens and companies fail to comply with the SEC, it may lead to another Ripple-like event which will affect the market.

MATIC Bulls Should Watch This Level

At the time of writing, MATIC is being supported at the $0.6 price level which will act as the launch pad for future bullishness. However, external market forces still hold sway in the token’s momentum and price actions in the near future. The recent lawsuits already slashed millions upon millions of possible gains for investors.

Source: Coinglass

Meanwhile, CoinGlass data shows MATIC long positions being liquidated as the market crashed after the lawsuits were made public.

Despite this, buying pressure after the crash continued with MATIC bulls holding $0.6 support. If they can hold on to this support level, we might be able to see a return towards the $0.83 support in the medium to long term.

Featured image from The Daily Hodl

The price of SUI has experienced a significant decline in the past week, dropping by 38.13%. In the last 24 hours alone, the price has fallen by 21.51%. However, there is a glimmer of hope as the price slightly increased by 1.53% in the past hour. Currently priced at $0.58 per SUI, the token is 61.12% below its all-time high of $1.50. The question now remains whether SUI can regain its footing and initiate a recovery.

SUI Coin Faces Bearish Pressure

The global crypto market cap has dropped below $1.10 trillion again, leading to a negative trading sentiment across most cryptocurrencies. SUI coin, in particular, has experienced a significant decline of over 10% in the past 24 hours, with its price falling below $0.70. The asset’s technical analysis suggests a bearish trend, characterized by high selling pressure and struggles for buyers to reverse the downward momentum.

Related Reading: Cardano (ADA) Faces Obstacles In Reaching Key Level In June – Here’s Why

On the 4-hour timeframe chart, the SUI coin has been in a downtrend, seeking stable support. It trades below its short-term and long-term moving averages, with the 50-day MA at approximately $0.837 and the 200-day MA at $1.020. This positioning below the moving averages signifies a consistent decline in the coin’s price, potentially indicating a lack of buying pressure and weakened market sentiment.

The immediate support level for the SUI coin is at $0.50, while the resistance level stands at around $0.76. Recent rejection below the resistance level has fueled the downtrend. Furthermore, the Relative Strength Index (RSI) on the 4-hour timeframe chart confirms the bearish sentiment, with an RSI of 17.9 indicating oversold conditions. Sellers currently outnumber buyers, further adding to the downward pressure on the SUI coin.

Partnership With Red Bull Racing: Can This Be A Catalyst For SUI Token’s Revival

The recent multiyear partnership between Sui and Formula One’s Oracle Red Bull Racing team has the potential to rejuvenate the Sui token price. As Sui becomes the blockchain partner of a renowned and globally recognized racing team, it gains exposure and credibility within the crypto and motorsport communities. This association can drive increased demand for Sui tokens, heightening the token’s value.

The collaboration aims to deliver engaging digital experiences for racing fans, creating a loyal user base and bolstering Sui’s reputation. With Red Bull Racing’s previous involvement in the crypto industry, its partnership with Sui signifies a shared interest in exploring the potential of cryptocurrencies and blockchain technology.

Related Reading: Bleak Dogecoin (DOGE) Social Sentiment Raises Questions About Price Reversal

While the partnership’s success and its impact on the Sui token price depend on several factors, including market conditions and investor sentiment, this collaboration holds promising prospects for the revival of the Sui token. Monitoring future developments and market reactions will provide valuable insights into the effectiveness of the partnership in driving the Sui token’s resurgence. At press time, SUI was trading at $0.5904 with a 24-hour drop of 19.8% in its price.

Featured image from iStock, charts from Tradingview.com