Altcoins
Altseason FOMO decreases considerably, SHIB, DOGE, XRP Crowd Sentiment Tanks
After a strong tinge around the possible altseason and expectations of a mega rally coming to the altcoin market, the FOMO has finally cooled for the better. Over the past week, we have seen altcoins correct between 10 and 20%, excluding some like Ethereum.
Altseason FOMO Cools, Suggesting Market Bottom
On-chain data provider Santiment identifies a notable trend in altcoin market. According to his analysis, increasing mentions of the altseason often coincide with periods of market highs and peaks. This suggests that traders have become overly greedy with their interest in altcoins increasing, thus indicating a potential market top.
However, since the March market peak, fear of missing out (FOMO) has significantly diminished. According to data from Santiment, the current atmosphere of mob fear could potentially bring us closer to the bottom of the market, thus providing a huge opportunity for investors.
Furthermore, according to data from Santiment, there is a significant decline in public sentiment for large-cap altcoins, including Shiba Inu (SHIB), Dogecoin (DOGE), and XRP, following the recent price decline. Santiment notes that this shift in sentiment could present a buying opportunity for patient traders.
As FOMO levels reach 2024 lows, investors who have been waiting on the sidelines for the market to calm may consider deploying new liquidity into the market.
Done, expect an imminent Altcoin bull run
Despite the price of Bitcoin hovering around its all-time highs, most altcoins have continued to trade below their highs. Famous cryptocurrency analyst Benjamin Cowen said that the excitement about an upcoming event altcoin bull run it may be premature.
He further added that a significant rally is unlikely until the US Federal Reserve begins cutting interest rates again. Historically, altcoins have always offered high returns following Fed rate cuts. Cowen said:
“The decline of most altcoins is reflected in the decline in the advance/decline index, which echoes the period before the Fed cut rates in 2019. This index saw a sharp decline before the Fed began its rate cuts in July of that year. It is essential to track these movements because the anticipation of an altcoin season dominating Bitcoin may be premature without a Fed interest rate cut.”
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Bhushan is passionate about FinTech and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the new emerging markets of Blockchain technology and cryptocurrencies. He is continually in a learning process and keeps himself motivated by sharing the knowledge he has acquired. In his free time he reads thriller fiction novels and sometimes explores his culinary skills.
The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for personal financial loss.