Connect with us
DAPA Banner

Crypto World

5 Buy-the-Dip Signals Crypto Traders Are Watching Right Now

Published

on

Negative Commentary as a Dip Buying Signal

The crypto market capitalization has fallen more than 20% year-to-date. In February, investors are divided over whether prices are approaching a local bottom or whether the broader bear market still has room to run.

Amid persistent volatility and growing uncertainty, a key question remains: when is the right time to buy the dip? Analytics platform Santiment has outlined 5 signals to help traders. 

Sponsored

Sponsored

Advertisement

Are Traders Missing Buy Signals During Market Fear? Santiment Shares 5 Signals

According to Santiment, the first indicator comes from extreme negative social sentiment. By measuring the balance of pessimistic and optimistic language tied directly to specific assets, traders can better filter out noise and identify moments when fear dominates discourse.

Sharp spikes in fear, uncertainty, and doubt (FUD) and pessimistic commentary across social media in past instances have been followed by market rebounds.

“Bottoming out at $60,001 back on Thursday, cryptocurrency’s top market cap asset rebounded a staggering +19% in just under 24 hours following the FUD,” the post read. “When negativity gets high, it’s usually because prices are getting low in a hurry. And once you see the predictions of doom for cryptocurrency, it’s generally the best time to officially buy the dip.”

Negative Commentary as a Dip Buying Signal
Negative Commentary as a Dip Buying Signal. Source: Santiment

Another signal comes from tracking mentions of phrases such as “buy”, “buying”, or “bought” in association with the word “dip.” While these mentions increase during sell-offs, Santiment cautions that this metric alone is unreliable. This is because markets can rebound before retail traders fully capitulate.

A more telling sign, according to the platform, is the shift in language from “dip” to more extreme terms like “crash.” When catastrophic language begins to dominate discussions, it suggests fear-driven capitulation. 

Santiment also highlighted the value of monitoring trending bearish keywords. This includes “selling,” “down,” or narratives suggesting assets are “going to $0,” which often emerge when retail confidence breaks.

Advertisement

Sponsored

Sponsored

The final signal comes from on-chain data, specifically the 30-day Market Value to Realized Value (MVRV) ratio. This metric measures whether recently active wallets are, on average, in profit or at a loss.

When MVRV enters the “strongly undervalued” zone, it indicates that the most recent buyers are underwater. This condition could precede market rebounds.

Advertisement

“As the ‘zone’ graphics indicate, you typically want to avoid being heavily invested in an asset when it is above the ‘Strongly Overvalued Zone.’ But on the flip side, there is great upside to buying while it is below the “Strongly Undervalued Zone.” Santiment added.

The analysis stressed that defining what constitutes a “dip” largely depends on market context and the timeframe a trader is operating on. A short-term move of around 1.7% may present an opportunity for hourly swing traders.

Nonetheless, the platform noted that most market participants tend to react on a weekly basis. This better reflects the realistic trading bandwidth of the average trader.

Rather than relying on intuition or “anecdotal things,” the firm argues that objective data offers clearer insight into when fear-driven sell-offs may be nearing exhaustion.

It is worth noting that buying decisions ultimately depend on individual investor preferences and time horizons. While Santiment’s signals can help identify periods of heightened fear and potential opportunity, they do not guarantee that a market rebound will follow. 

Advertisement

At present, many analysts suggest that the broader bear market may still have room to run. This means that prices could remain under pressure for longer. 

As a result, decisions to buy or hold should be guided by each investor’s risk tolerance, strategy, and opportunity cost considerations.

Source link

Advertisement
Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Crypto World

Paradigm Is Building a Prediction Markets Trading Terminal Targeting Professional Traders

Published

on

Brian Armstrong's Bold Prediction: AI Agents Will Soon Dominate Global Financial

TLDR:

  • Paradigm partner Arjun Balaji has been leading the trading terminal project since late 2025 for pro traders.
  • The firm is exploring prediction market indexes by bundling multiple markets into one single tradable product.
  • Kalshi, backed by Paradigm, has raised at least $1 billion, pushing its valuation to a record $22 billion.
  • Paradigm is raising up to $1.5 billion for a new fund expanding beyond crypto into AI and robotics sectors.

Paradigm, the prominent crypto venture capital firm, is developing a prediction markets trading terminal, sources say.

Partner Arjun Balaji has been leading the project since late 2025. The terminal targets professional traders and market makers. Paradigm has declined to comment on the initiative.

This move comes as mainstream financial institutions rush to capitalize on prediction markets’ growing popularity across sports, elections, and crypto pricing.

Paradigm Eyes Market-Making and Index Products

Beyond the trading terminal, Paradigm is weighing whether to establish an internal market-making desk. Two sources confirmed the firm has actively discussed this possibility. A market-making desk would position Paradigm as a direct participant, not just an infrastructure builder.

Separately, a third source says Paradigm is working with researchers on prediction market indexes. The concept involves bundling multiple prediction markets into one tradable product.

Advertisement

This mirrors how the S&P 500 packages hundreds of stocks into a single instrument. The firm has already started collecting prediction market data into a public dashboard.

Sources familiar with the matter noted that Balaji has been working on the terminal project since late 2025. They spoke on condition of anonymity to discuss private business dealings. Paradigm’s spokesperson declined to comment when approached for a response.

This activity places Paradigm squarely inside a rapidly growing sector. Prediction markets have become one of Silicon Valley’s most discussed areas over the past year. Traditional financial players are also moving in, adding further competitive pressure.

Advertisement

Kalshi and Polymarket Drive Sector Valuations Higher

Paradigm has been a consistent backer of Kalshi, one of the two dominant prediction market platforms. The firm joined three successive Kalshi fundraising rounds in 2025. Paradigm also led a December round that valued Kalshi at $11 billion.

Kalshi has since raised at least $1 billion in new financing, bringing its valuation to $22 billion. Paradigm co-founder Matt Huang sits on Kalshi’s board of directors.

One source confirmed that Paradigm’s trading terminal is “not competitive with Kalshi’s platform,” drawing a clear line between the two products.

Rival platform Polymarket is also seeing sharp valuation growth. The Wall Street Journal reported Polymarket is in talks to raise at a roughly $20 billion valuation.

Advertisement

A new venture firm focused entirely on prediction markets has also emerged, backed by the CEOs of both platforms.

Paradigm’s prediction markets push fits within a wider expansion beyond crypto. The firm is raising up to $1.5 billion for a new fund covering AI and robotics alongside digital assets.

The Wall Street Journal recently reported on the fund’s broader scope, marking a clear shift in Paradigm’s investment direction.

Advertisement

Source link

Continue Reading

Crypto World

EDX Markets Applies for OCC Trust Bank to Expand Crypto Services

Published

on

Coinbase, Banks, Ripple, BitGo, United States, Paxos

EDX Markets, an institutional crypto exchange, has applied to the US Office of the Comptroller of the Currency (OCC) to establish a national trust bank that would provide crypto custody, asset management and trade-settlement services.

The proposed entity, EDX Trust, would operate as a non-depository national bank, separating custody and settlement from trading while continuing to route order matching through EDX’s existing platform.

In its application, the company said the model is intended to address structural risks in crypto markets, where trading, custody and brokerage are often combined within a single platform, creating potential conflicts of interest and single points of failure.

EDX said the trust bank would provide fiduciary asset management services, invest client cash and stablecoin balances in highly liquid assets, and facilitate trading through a riskless principal model with end-of-day net settlement.

Advertisement

The bank would operate online from Chicago and target institutional clients such as broker-dealers, futures commission merchants and registered investment advisers, according to the filing.

EDX said moving these functions into an OCC-chartered entity would allow it to offer services nationwide under a single regulatory framework while meeting custody requirements for regulated institutions.

Founded in 2022, EDX Markets is backed by traditional market participants including Citadel Securities, Virtu Financial, Fidelity Digital Assets and Hudson River Trading.

Coinbase, Banks, Ripple, BitGo, United States, Paxos
EDX Markets Holding Company trust bank application for digital asset activities. Source: OCC

Related: Fed’s Barr backs stablecoin clarity but warns of run risks

Crypto companies seek US bank charters

The application comes as crypto and financial companies increasingly pursue national trust bank charters to expand institutional services under federal oversight.

Advertisement

Earlier this month, Zerohash, a blockchain infrastructure company, applied for a US national trust bank charter to expand its stablecoin and custody services for banks, brokerages and fintechs.

Coinbase, Banks, Ripple, BitGo, United States, Paxos
Source: Zerohash

Other recent applicants include Coinbase, which applied in October and is still awaiting a decision, as well as Laser Digital and Payoneer, which filed applications earlier this year to expand custody and stablecoin-related payment services.

Traditional financial institutions are also entering the space. In February, Morgan Stanley applied for a de novo trust bank charter to support digital asset services through a separate entity.

At the same time, the OCC has continued approving applicants, issuing conditional licenses last month to Bridge, Stripe and Crypto.com, following approvals in December for Ripple Labs, Circle Internet Group, Fidelity Digital Assets, Paxos and BitGo.

However, the pace of approvals has drawn scrutiny. In February, the American Bankers Association urged the OCC to slow the process, citing unresolved oversight under pending US stablecoin legislation.

Advertisement

Magazine: A newbie’s guide to surviving crypto winter