中文版本：
<aside> 🏄 Market Sentiment, similar to the commonly known Greed Index, can be used to understand the overall traders' perspectives on the token. ‼️ Risk warning: any data/indicator has its advantages, disadvantages, and limitations. Please make sure to understand them carefully, crypto trading contains substantial risk and is not for every investor. DYOR.
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Market Sentiment Overview
Market Sentiment (MS) reflects the overall traders' optimism/bullishness or pessimism/bearishness towards the market by statistically analyzing the difference between spot prices and perpetual futures prices. When the market sentiment value is higher, it indicates that more traders are using perps to long the token, implying that traders are willing to buy in at higher prices, showing optimistic sentiment. Conversely, when the market sentiment value is lower, it indicates that more traders are using perps to short the token, implying that traders expect lower prices, showing pessimistic sentiment.
In the Market Sentiment overview, you can see the rankings of tokens with optimistic (bullish) and pessimistic (bearish) sentiment. The rankings are sorted by the absolute value of the market sentiment (MS value) and are labeled with three states based on the sentiment value: optimistic/pessimistic, highly optimistic/pessimistic, and over optimistic/pessimistic.
Market Sentiment is a type of position and sentiment analysis indicator. Simply put, market sentiment helps understand whether perpetual futures market traders are generally more bullish or bearish. On a more advanced level, Market Sentiment tends to serve for observing the dynamic changes of traders’ perspectives and trends over a period, making it suitable for comprehensive analysis of potential market direction when combined with other data (such as Holder Concentration and Capital Shortage Index). Compared to metrics that directly reflect traders' behaviors, like Taker Intensity or Whale Hunter, Market Sentiment data is less useful for observing short-term trader dynamics.
💡 Market Sentiment is suitable for analyzing and judging trends. During phases when market sentiment leans towards optimism, it might be more appropriate to plan long strategies. Conversely, during phases of pessimistic sentiment, short strategies might be more suitable. Additionally, when market sentiment reaches extreme level of optimism or pessimism, it may be necessary to analyze whether the market direction is about to change.
You can understand the rankings of token market sentiment from the Market Sentiment overview, or further explore the sectors or historical data.
🙋🏻♂️ Here are some examples:
Market Sentiment- 1D ONDO
Using ONDO 1D timeframe as an example (above), it can be observed that when the market sentiment value is at a high optimistic level (red circle), the token price reaches a peak and then declines as the optimistic sentiment soars. Conversely, when the market sentiment value is at a high pessimistic level (blue circle), the token price is at a low point and ready to rise.
In more extreme cases (over optimistic or pessimistic), the token market often reaches a reversal point. For example, in the chart of the meme coin BONK below, there have been two instances in the past year where appear over optimistic status (red circles) led to the token price starting to fall from a peak, followed by a gradual cooling of the optimistic sentiment. Conversely, when the market sentiment is quite pessimistic, it may indicate that the market is at a low stage. Of course, it's also evident that not every high sentiment level coincides with a turning point. For example, during the second blue circle, there was a brief period of relatively high pessimistic sentiment, but the subsequent market continued to decline.
Market Sentiment- 1D BONK