While the leading cryptocurrency Bitcoin has been more stable in recent days, investor sentiment in the cryptocurrency market is reportedly on the rise again.
At this point, cryptocurrency data analysis platform Santiment noted that although overall investor sentiment in the market is rising, XRP and Ethereum have recorded their highest “FOMO” (fear of missing out) levels in the last five weeks.
According to Santiment’s latest data, ETH and XRP investors have become significantly more optimistic. This has led to ETH and XRP reaching their highest FOMO levels in the last five weeks.
According to the data, XRP reached its highest FOMO level with 3.02 bullish comments for every bearish comment, while Ethereum was in the mild FOMO zone with a ratio of 2.31. In contrast, Bitcoin’s ratio of 1.40 indicated a more balanced and neutral investor sentiment.
This shift in investor sentiment, at a time when prices are struggling to gain steady momentum, raises the possibility that the upward trend may have overtaken market performance.
At this point, Santiment analysts note that the cryptocurrency market is moving in the opposite direction of investor expectations. They emphasize that the increasing optimism for ETH and XRP could be a counter-signal for the price.
The analysis notes that historically, short-term corrections can occur during periods when investors have excessively bullish expectations, and suggests that high optimism in XRP and Ethereum could increase downside risks or limit the pace of their rise in the short term.
In contrast, balanced and neutral investor sentiment in Bitcoin is seen as healthier in terms of price. This is because, according to Santiment analysts, strong rallies can occur when investors are not yet fully focused on bullish expectations.
