Santiment: FOMO unlikely to hinder further market growth

A recent analysis by the market intelligence platform Santiment suggests that FOMO might not disrupt the current bullish trend in the cryptocurrency market. 

Despite massive rallies across the market, the report from Santiment spotlights a surprising level of neutrality in market sentiment, which could allow continued growth as the uptrend matures.  

Notably, over the past 30 days, major altcoins like Stellar (XLM), XRP (XRP) and Cardano (ADA) have experienced record-breaking gains. 

Stellar surged by an impressive 512%, XRP rose 444%, and Cardano increased by 280% over the last month, respectively. Market participants have observed these dramatic price movements, yet euphoria has noticeably cooled after a wave of profit-taking in late November.  

For context, this profit-taking wave dominated the scene after Bitcoin (BTC), the industry’s firstborn, attempted to breach the $100,000 mark. The bearish trend led to a retracement for BTC and the rest of the market, but a recovery has since ensued.

Despite the recovery, Santiment’s findings show that the hype surrounding these assets has not transitioned into widespread FOMO. Retail traders appear to have stepped back after capitalizing on earlier gains, leading to a quieter atmosphere.

Historically, market trends often move contrary to prevailing trader sentiment. Santiment suggests that the current lack of retail enthusiasm is a positive indicator for further market climbs. CryptoQuant CEO Ki Young Ju confirmed this trend last month. 

The reduced noise surrounding top-performing assets implies that the market could experience sustained upward momentum without the volatility often driven by FOMO-induced buying.  

This period of neutrality in trader sentiment syncs with historical patterns in which quieter periods have preceded bullish moves. 

Interestingly, Cardano founder Charles Hoskinson believes BTC could still witness further growth to $500,000, possibly benefiting the rest of the market. Market veteran Michaël van de Poppe holds this sentiment, stressing in a recent analysis that the ongoing bull run is not yet over.

He noted that, as XRP has triggered the bullish uptrend in the altcoin market, the scene could witness a further 10x growth next year. However, he expects sideways movements for another three to four months.