Altseason FOMO Drops Considerably, SHIB, DOGE, XRP Crowd Sentiment Tanks
After a strong hue around the possible altseason and the expectations of a mega rally coming in the altcoin market, the FOMO has finally cooled down for the better. Over the last week, we have seen the altcoins correcting anywhere between 10-20% barring a few like Ethereum.
Altseason FOMO cools Down Suggesting Market Bottom
On-chain data provider Santiment identifies a notable trend in the altcoin market. As per its analysis, the rising mentions of altseason often coincide with the periods of market tops and peaks. This suggests that the traders have become overly greedy with their interest in altcoin surging thereby indicating a potential market top.
However, after the market peak in March, the fear of missing out (FOMO) has dropped significantly. As per the Santiment data, the current atmosphere of crowd fear could potentially lead us closer to a market bottom, thereby providing a huge opportunity to investors.
Furthermore, as per the Santiment data, there’s a significant drop in the crowd sentiment for large-cap altcoins including Shiba Inu (SHIB), Dogecoin (DOGE), and XRP, following the recent price declines. Santiment notes that this sentiment shift could present a buying opportunity for patient traders.
As the FOMO levels reach to their 2024 lows, investors who have been waiting on the sidelines for the market to cool off might consider deploying fresh cash in the market.
Done Expect Imminent Altcoin Bull Run
Despite the Bitcoin price flirting around its all-time high levels, most altcoins have continued to trade below their highs. Renowned crypto analyst Benjamin Cowen stated that the enthusiasm for an imminent altcoin bull run could be premature.
He further added that a significant rally is unlikely until the US Federal Reserve begins cutting interest rates again. Historically, altcoins have always delivered strong returns following the Fed rate cuts. Cowen stated:
“The decline in the majority of altcoins is mirrored in the falling advance/decline index, echoing the period leading up to the Fed’s rate cut in 2019. This index saw a sharp decline before the Fed initiated rate cuts in July of that year. It’s essential to track these movements because the anticipation of an altcoin season dominating Bitcoin may be premature without a reduction in interest rates by the Fed.”
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