TL;DR
- The negative sentiment around XRP and SHIB might actually signal a good buying opportunity, as markets sometimes tend to defy crowd expectations.
- The meme coin shows potential for a rally due to positive factors like Shibarium’s growth and reduced selling pressure.
XRP and SHIB Flash the Buy Signal?
The cryptocurrency market witnessed a significant correction yesterday, with Bitcoin (BTC) briefly plunging below $65,500. The sector recovered some of the losses in the following hours, but crypto analytics platform Santiment suggested that a rising number of industry participants believe the bull run has come to an end.
The entity also outlined the top 10 digital assets involved in the most bearish narratives on October 23 (the day of the latest pullback). The first spot belongs to Chainlink (LINK), whose weighted sentiment dipped to -0.43. Bitcoin (BTC) ranks second with a ratio of -0.37, while Goateus Maximus (GOAT) comes third (-0.35).
Other well-known cryptocurrencies on the list include Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), and Ripple (XRP).
While diminishing crowd optimism might sound like bad news for the bulls, it could, in fact, have the opposite effect. Santiment reminded that cryptocurrencies are highly speculative, and their prices sometimes move in the opposite direction of people’s expectations.
“Markets typically move the opposite direction of the crowd’s expectation, meaning the bearish narratives surrounding these coins can lead to rewarding results for those willing to go against the crowd selloffs that are beginning to mount,” the platform stated.
Focusing on SHIB
There are many other factors hinting that the self-proclaimed Dogecoin killer might be poised for a rally in the short term. One example is the booming meme coin sector, which is well in the green on a daily scale. Some of its best performers include cat-themed tokens such as Popcat (POPCAT) and Cat in a Dogs World (MEW).
Another element is the resurgence of Shiba Inu’s layer-2 blockchain solution – Shibarium. Daily transactions processed on the network have been in the millions in the past few days, reaching early 2024 levels.
Lastly, we will touch upon the SHIB exchange netflow, which has been predominantly negative (outflows surpassing inflows) over the last 30 days. This suggests a shift from centralized platforms toward self-custody methods and could be viewed as a bullish move due to the reduced immediate selling pressure.
