The social engagement for Tezos and Cardano is exhausting and it will only bring trouble for the token prices in the short-term as we are about to read more in the Tezos news.
Both coins’ social engagement metrics exploded over the past six months but the most recent data that we have in our crypto news shows that the enthusiasm for ADA and XTZ is fading. This is a sign that the momentum is getting exhausted and the drastic change in the economic landscape because of the COVID-19, will impact the optimism around these altcoins.
Both XTZ and ADA are contained within the trade zones and a breakout is necessary to confirm the trend direction. The six-month social engagement for Tezos and Cardano has been outstanding and only showed the potential for the bullish price movement. The seven-day sentiment is not so good looking after all.
Over the past six months, both Tezos and Cardano metrics went through the roof according to the insights provider LunarCRUSH. The firm reported that more than 75% of the social interactions have been bullish for the altcoins. Tezos saw more than 700 million social engagements while Cardano had more than 620 million which is quite weird since there are only about 30 million people that actually own the cryptocurrencies.
LunarCRUSH took into consideration the depth of the community interactions such as likes, posts, comments, and other metrics. XTZ and ADA have remained overwhelmingly bullish over the past 6 months according to these statistics. However, the global financial markets could even spill over directly to these tokens. The data from The TIE shows that the daily sentiment started to decrease. The number of positive conversations on social media about Tezos and Cardano started declining from the peak.
The sudden change could mean more trouble for the tokens in the near-term future especially if the crisis around the world continues. This still has to be analyzed against the next six months of sentiment as Cardano seems to be returning to the multi-week average while Tezos is hitting new weekly lows. There are a few technical patterns from which we can see a bearish outlook forming. The technical formation for Tether developed as a result of price action during the March 12 market meltdown. The trendline can be seen around the swing highs while another seems to be coming from the swing lows.
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