In the last three months the price of Binance Coin (BNB) has roughly trebled in value.  There has been a succession of good news stories that have explained the reasons behind this strong surge in value.  Major factors identified for the rise in BNB’s price include the success of the new Binance Launchpad ICO platform, the upcoming release of their decentralized exchange [DEX]  and the announcement that Binance may soon support margin trading.

How can Sentiment Analysis help?

 

Crypto Sentiment Alerts Chart showing BNB price rise

The reasons behind this large increase in BNB’s price may well be fundamental. Meanwhile, monitoring the market sentiment towards Binance Coin would also have alerted savvy investors of how favourably the market started perceiving BNB.  The chart above highlights that over the past 3 months the 24h volume of positive posts in social media about BNB has spiked by more than 100% over its moving average on 7 separate occasions.  This is a clear signal of a token being discussed highly favourably by the market over an extended period of time.

Imagine if you‘d an early warning of this swing in market mood towards BNB before most traders?  With Causality’s new crypto sentiment alerts – you can.

Let’s assume that we had set a Causality crypto sentiment alert on BNB to warn when positive post volume increased by more than 100% in the last 24 hours. The alert would have first been triggered in early January when the price of BNB was only $6.  The alert would have triggered twice more mid-January when price was at a similar level. This would have given us plenty of opportunity to do any further fundamental or technical analysis we felt was necessary and come to a decision to buy.

Highlighted section of Cryptosentiment Crypto Sentiment Alert BNB

BNB Chart Zoomed In

More than One Surge Predicted

Even if we had sat on the sidelines and missed the early opportunity to get in when the price was at $6, we’d have been alerted to a further surge in positive market sentiment towards BNB. This would have occurred at the end of February when the price was around $10.

With the BNB price now sitting at over $16 that represents either a 200% gain in 2 months or a gain of 50% in a month depending on when you’d pulled the trigger.

If you’d like to gain access to Causality’s crypto sentiment alerts, you can sign up for the service at https://cryptosentiment.ai


Also published on Medium.