Amid the crypto market’s general calm, a reputable market intelligence platform contends that this tranquil phase signals an imminent upswing for digital assets such as XRP.
Data analytics platform Santiment recently called attention to the current subsided state of the crypto market in an update on X. Particularly, the update focused on the assets on the top then ranking.
Heightened Pessimism Toward Large Cap Coins
Santiment noted that the crypto market caps have been fluctuating within a range in recent weeks. Effectively, the market has failed to exhibit the usual growth pattern that traders have gotten used to since the bull cycle began last October.
🐻 With #crypto market caps ranging and lacking the usual growth traders have been accustomed to since the #bullcycle began in October, there is a notable #bearish sentiment that has taken hold of #crypto discourse this week. #Bitcoin, #Ethereum, #BinanceCoin,
(Cont) 👇 pic.twitter.com/c3M4bPxlhi
— Santiment (@santimentfeed) February 5, 2024
As a result, a noticeable bearish sentiment prevails in crypto discourse this week. Emphatically, Santiment observed a notable shift toward negative sentiment among the crowd.
However, this pessimism is more amplified toward the top-cap assets in the crypto market amid their pronounced price stagnation.
Specifically, the larger cap coins under scrutiny include XRP, Bitcoin (BTC), Ethereum (ETH), Binance (BNB), Cardano (ADA), and Solana (SOL).
According to the analytics platform, these top-cap assets are all experiencing a uniformly more negative crowd sentiment. It added that pessimism towards them is particularly higher compared to their historical averages.
Moreover, Santiment underscored that this is the first occurrence of such uniformly negative sentiment across these assets in over six months.
It is a Bullish Sign
Meanwhile, the intelligence platform noted a bullish signal lies lurking in this heightened negativity towards XRP and other assets.
Specifically, it mentioned that when traders exhibit concern and fear, uncertainty, and doubt (FUD) across multiple prominent assets, it signals that the large caps have a higher likelihood of experiencing an impending bounce.
It argued that historically, markets tend to move in the direction least expected by the crowd, often catching many short traders off guard when there is a sudden rise.
a signal that market caps have a higher likelihood of seeing an impending bounce. Markets historically move in the direction of the crowd’s least expected direction, making a rise catch many #short traders off guard.
Link to weighted sentiment chart: https://t.co/rc2QbJxJT0
— Santiment (@santimentfeed) February 5, 2024
More Bullish Signs for XRP
In a previous update, Santiment revealed that on-chain metrics indicated XRP could be on the verge of experiencing a bullish rebound. The Crypto Basic brought attention to this development in a report last week.
One of the indicators was the surge in whale transactions, which reached a seven-month peak last month. Besides, the intelligence platform observed no manifestation of panic actions from XRP whales.
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