Negative Sentiment for XRP and SHIB: Bullish Signs Ahead?

Quick Summary

• The current negative sentiment surrounding XRP and SHIB may indicate a favorable buying opportunity, as markets often move contrary to crowd expectations.
• The meme coin is poised for potential growth, driven by positive developments like Shibarium’s expansion and decreased selling pressure.

XRP and SHIB Signal for Potential Buying?

The cryptocurrency market experienced a notable correction yesterday, with Bitcoin (BTC) momentarily falling below $65,500. Although the sector made some recoveries shortly after, crypto analytics platform Santiment pointed out an increasing number of industry participants perceive the bull run to be over.

The platform also highlighted the top ten digital assets associated with the most bearish narratives on October 23 (the day of the latest dip). Leading the list is Chainlink (LINK), where the weighted sentiment dropped to -0.43. Bitcoin (BTC) follows in second place with a ratio of -0.37, while Goateus Maximus (GOAT) is third (-0.35).

Other notable cryptocurrencies on the list include Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), and Ripple (XRP).

Although declining crowd optimism may appear detrimental for bulls, it could actually result in the contrary. Santiment emphasized that cryptocurrencies are highly speculative, and their prices can move against public expectations.

“Markets often move contrary to the crowd’s expectations, indicating that the negative narratives surrounding these coins may yield rewarding outcomes for those who dare to counter the rising sell-offs,” the platform noted.

Examining SHIB

Several additional factors suggest that the self-proclaimed Dogecoin killer could be gearing up for a short-term rally. One such factor is the thriving meme coin market, which is performing well recently. Notable gainers include cat-themed tokens like Popcat (POPCAT) and Cat in a Dogs World (MEW). 

Another aspect is the revival of Shiba Inu’s layer-2 blockchain solution, Shibarium. Daily transactions on the network have reached millions in recent days, approaching early 2024 levels.

Lastly, consider the SHIB exchange netflow, which has mostly been in the negative (outflows exceeding inflows) over the past 30 days. This indicates a trend toward self-custody methods over centralized platforms and could be interpreted as a bullish signal due to diminished immediate selling pressure.