XRP and Shiba Inu bullish signals shine as market sentiment troughs to welcome 2024

Market sentiment for XRP and Shiba Inu has reached yearly lows, indicating that now is the time to buy. Bearish sentiment in the crypto market has intensified over the past few hours, with Bitcoin falling further to retest $64K before settling in the $65K range. While Bitcoin is down about 4% from its intraday high, altcoins like SHIB are down more significantly.
In particular, the memecoin market has plunged 11.3%, resulting in a loss of approximately $6 billion due to Bitcoin’s correction. This double-digit percentage loss is reflected in the market capitalizations of Shiba Inu, Dogecoin (DOGE), and PEPE.
With this fresh round of declines, positive market sentiment for both Shiba Inu and Dogecoin has reached its lowest level this year. Santiment, a market intelligence platform known for its excellence in on-chain and social metrics, noted the latest results in an update about X.
The report also noted that the rise in negative sentiment went beyond memecoins. Notably, the seventh-largest crypto asset, XRP, has been similarly negatively impacted. Specifically, Santiment observed that positive mentions for XRP, DOGE, and SHIB have now reached 2024 lows due to price declines.
Meanwhile, the extremely negative market sentiment surrounding these large-cap altcoins is considered a potential bullish indicator. Santiment stressed that there may be a major buying opportunity right now for patient investors who have been waiting for the market to lose interest in both Shiba Inu and XRP.
It is worth noting that this indicator has recently been proven to be reliable. For example, on Feb. 5, Santiment revealed negative market sentiment towards large-cap cryptocurrencies. This happened after Bitcoin continued to consolidate in the $43,000 price range even after the approval of a Bitcoin spot ETF. This trend contradicts the upward trend that began in the fourth quarter of 2023.
At the time, Santiment noted that XRP, Cardano (ADA), and Solana (SOL) all had more negative sentiment than their historical averages for the first time in six months. Indeed, exactly one month later, Bitcoin reached a new all-time high of $73,650. Meanwhile, altcoins like Shiba Inu and DOGE achieved new market highs not seen since 2021.
Basically, while the ongoing decline hurts traders who bought XRP and SHIB at higher prices, current indicators suggest that buying the dip today could set the stage for a potential rebound. Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not necessarily reflect the views of The Crypto Basic. Readers are advised to conduct in-depth research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.