Altcoins Warned by Santiment: High Network Activity!

The recent cryptocurrency market declines have attracted the attention of investors, and according to a new analysis by Santiment, some altcoins are presenting "buying opportunities at the dip." Although the general price trend of crypto assets has been downward over the past week, Santiment’s Activity Matrix data reveals that there has been high on-chain activity in certain altcoins.

In particular, FTX Token (FTT), WAX, and PAX Gold (PAXG) have shown "extraordinarily high" on-chain activity. This situation is considered a promising signal for investors that prices could reverse. Santiment experts emphasized that "hot" networks typically have the potential for short-term recovery.

According to the analysis, "cold" networks such as Maker (MKR), Rocket Pool (RPL), Lido DAO (LDO), and DAI continue to show weak activity. It is anticipated that the downtrend in prices for these projects may persist for some time. The names at the top of Santiment’s Hottest Networks list are FTX Token, WAX, PAX Gold, Synthetix (SNX), and OriginTrail (TRAC).

The high activity in the networks of these altcoins is supported by factors such as an increase in whale transactions, social media interactions, and exchange outflows. Santiment warns investors with the statement, "Cold networks typically maintain a downward trend, while hot networks provide early signals for price reversals." According to the data analysis, despite the overall weakness in the market, the "warming" of some altcoins could create selective buying opportunities in the coming days.