Sentiment analysis on social media tracks the tone of discussions across platforms like Twitter and Reddit. Positive sentiment—such as excitement about new projects, partnerships, or endorsements—can signal a potential price surge as more people buy into the cryptocurrency. Negative sentiment, driven by bad news, rumors, or regulatory concerns, can lead to selling pressure and a price drop. By monitoring sentiment in real-time, traders can anticipate shifts in market behavior and capitalize on short-term price movements before they become widely recognized. This makes sentiment analysis a powerful tool for predicting cryptocurrency price trends.