XRP and Ethereum On-Chain Data Signals Surging Bullish Sentiment Despite Price Dips
XRP and Ethereum retail traders are turning more bullish on the crypto assets, according to on-chain data. The sentiment has increased despite the recent price dips. Will the crypto asset recover amid FOMO?
XRP and Ethereum FOMO Hits 5-Week High
On-chain analytics platform Santiment revealed in an X post that retail sentiment is no longer fearful across the top three crypto assets Bitcoin, Ethereum and XRP. However, it’s also not evenly balanced.
XRP is showing the most FOMO at 3.02 bullish comments for every single bearish comment. Ethereum also sees a higher FOMO at 2.31, whereas Bitcoin’s bullish-to-bearish comments ratio across social media is lower at 1.40, which is more neutral as compared to other crypto assets.
As crypto typically moves opposite to social sentiment, Santiment highlighted high risks of a pullback or consolidation in XRP and Ethereum.
When traders get too bullish on XRP or ETH while prices are already dipping, it can create short-term downside risk or at least slow the rebound.
Meanwhile, Santiment claims a neutral sentiment on Bitcoin “may actually be healthier.” It cited that upside momentum or recovery occurs when retail investors haven’t fully priced in the upside.
As CoinGape reported earlier, whale activity on the XRP Ledger has also declined significantly. Notably, the number of transactions worth more than $1 million dropped from 70 to just 2 within a week. It comes amid huge outflows from US spot XRP ETFs and the US-Iran war escalation.
Prices Under Pressure Ahead of US CPI Inflation Data
XRP price dropped more than 1% in the past 24 hours, extending the weekly decline to almost 6%. The price is currently trading at $1.06, with a 24-hour low and high of $1.05 and $1.08, respectively. Furthermore, trading volume has increased by 11% in the last 24 hours.
CoinGlass data showed mixed sentiment in the derivatives market. The total XRP futures open interest jumped 1.30% to $2.33 billion in the last 24 hours. However, futures OI has dropped almost 2.65% on CME, with selloff rising across other crypto exchanges.
Meanwhile, ETH price action shows volatility ahead of today’s US CPI inflation data release. Price continued to trade range-bound between $1750 and $1840 over the last few days. Trading volume has increased by 5% over the past 24 hours.
Derivatives market revealed mixed sentiment, with selling in the last few hours as Clarity Act odds fell to a record low. The total ETH futures open interest jumped 6% to $31.22 billion in the last 24 hours. ETH futures OI on CME and Binance plunged nearly 0.65% and 0.10%, respectively.
As US macroeconomic indicators cause fluctuations in the retail sector, domestic traders are advised to utilize the best regulated crypto exchanges in the US to ensure safety and compliance.
