As the cryptocurrency market continues to experience a dip, many traders are turning to social media for guidance on whether to buy or sell. However, according to onchain analytics platform Santiment, this may not be the most reliable source of information.

Despite the widespread sentiment on social media to “buy the dip,” Santiment’s data shows that this may not be the best strategy at the moment. In fact, their analysis suggests that the market may still have some room to fall before a true bottom is reached.

So why is there such a disconnect between social media chatter and onchain data? It all comes down to the behavior of different types of traders. While social media is often dominated by retail investors who may be more prone to emotional decision-making, onchain data reflects the actions of larger, more experienced players in the market.

Santiment’s data also reveals that there has been a significant increase in the number of large transactions on the Ethereum network, indicating that institutional investors may be taking advantage of the dip to accumulate more assets. This further supports the idea that the market may not have hit its bottom yet.

Of course, this doesn’t mean that buying the dip is always a bad idea. In fact, for long-term investors, it can often be a great opportunity to add to their positions at a lower price. However, it’s important to do your own research and not rely solely on social media hype.

In the end, it’s crucial to remember that the cryptocurrency market is highly volatile and unpredictable. While social media can provide valuable insights and opinions, it’s important to also consider data-driven analysis and make informed decisions based on your own risk tolerance and investment goals. So before you rush to buy the dip, take a step back and consider all the factors at play.