Understanding Market Sentiment
Sentiment analysis gauges market emotions — fear and greed cycles that create buying and selling opportunities.
What is Market Sentiment?
Market sentiment describes the collective mood of investors. True sentiment analysis draws on social media, funding rates and survey data. Our per-coin component does not: it reads recent price action only, on the assumption that price is the most visible expression of sentiment. The site-wide Fear & Greed Index shown elsewhere is a separate, external measure.
Contrarian Approach
Warren Buffett's famous quote applies: 'Be fearful when others are greedy, and greedy when others are fearful.' Extreme fear often creates the best buying opportunities, while extreme greed often precedes corrections.
How We Use It
Sentiment carries 4% of the Value Score. It averages the 24-hour and 7-day price change: a rising price scores higher. Note this pulls against Momentum (also 4%), which rewards recent weakness — the two partly cancel by design, so neither short-term direction dominates the total. Together with BTC Correlation they form the price-action group at 12%.
Extreme Fear
Potential Buy Opportunity
Extreme Greed
Potential Sell Signal
Current Top 5 Coins by Sentiment Proxy
How our algorithm currently scores the leading crypto assets on the "Sentiment Proxy" component. Higher = stronger undervaluation signal on this single dimension.
Worked Example
TRON (TRX) leads with a Sentiment Proxy value of 55/100. On this single dimension, TRON currently shows a neutral signal. Click TRON above to see the full score breakdown across all 10 metrics.