XRP traders are showing positive signals despite a tightening crypto bear market wiping out previous gains. The digital asset market cap is down to $2.37 trillion with top coins like Bitcoin (BTC) and Ethereum (ETH) shedding 23% and 35.1% last month.
Crypto Traders Project XRP Reversal
A new Santiment analysis shows XRP traders remain optimistic amid the wider market decline. In an X post, the firm noted that XRP is more optimistic among traders; however, risks are present due to historical trends.
“XRP is seeing a more optimistic outlook among traders. As we know, markets move opposite to the fear & greed of retail traders. There remains a strong argument for a short-term relief rally as long as the small trader crowd continues to show disbelief toward cryptocurrency as a whole.”
Like the broader market, XRP has experienced significant volatility this year, losing on both the institutional and retail fronts. The asset plummeted 14% in 24 hours and 26% this week, but traders appear to favor a turnaround.
Santiment cites its Positive/Negative sentiment metric, along with other factors, to support the position. The ratio shows mentions of an asset across social media platforms, and XRP received more positive analysis from traders than Bitcoin and Ethereum.
It should be noted that the XRP community has long tipped a turnaround for the asset. In January, bulls predicted an altcoin season led by the assets. Again, this fell short of expectations as it plummets through multiple support levels.
XRP bulls appear more optimistic due to prior institutional leanings. Last year, the assets saw a string of consecutive inflows, hitting monthly highs and eventually toppling USDT as the third-largest crypto by market capitalization.
The sharp spike was also fueled by anticipation of the U.S. spot XRP ETF and a surge in treasury firms accumulating the asset. Aside from Bitcoin and Ethereum, institutions have backed it as a viable reserve asset for a company’s balance sheet.
Renowned trader Ali Martinez highlighted the TD Sequential flashing buy signals for the assets. Although whale numbers have significantly dropped, traders continue to rally for a rebound.
On the flip side, bears have their grip on the market at the moment, with multiple metrics projecting further downward pressure. At the time of writing, the crypto dear and greed index hit 12 (extreme fear).
Source: https://zycrypto.com/xrp-defies-crypto-gloom-as-retail-fear-grips-bitcoin-and-ethereum/
