A recent market correction has caused a significant decline in the price of major cryptocurrencies, including Bitcoin and altcoins like Shiba Inu (SHIB). This has led to a corresponding decrease in positive crowd sentiment, with investors expressing increased negativity towards these assets. However, for long-term investors, this negativity could signal a strategic buying opportunity.
Investor Sentiment Dips Alongside Prices
The cryptocurrency market has experienced a period of volatility in recent hours. According to data from CoinMarketCap, Bitcoin dipped around $64,000 before a slight recovery.
Read Also: Santiment Says One Metric Indicates Bullishness for BTC, XRP, ADA, and BNB: Details
While this represents a modest decline of around 3% from its intraday high, altcoins like SHIB have suffered steeper losses. The meme coin market, in particular, has witnessed an 11.3% plunge, wiping out an estimated $6 billion in value. This correction impacted the market values of SHIB, Dogecoin (DOGE), and other meme coins.
Positive Mentions of SHIB and XRP Hit 2024 Low
Following this price drop, Santiment, a market intelligence platform specializing in on-chain and social data analysis, revealed a significant decline in positive crowd sentiment towards SHIB and DOGE.
This negativity extended beyond meme coins, with XRP, the seventh-largest cryptocurrency by market capitalization, also experiencing a similar trend. According to Santiment, positive mentions of XRP, DOGE, and SHIB have all reached their lowest points in 2024, coinciding with the recent price declines.
Negative Sentiment as a Potential Buying Signal
While the current negativity surrounding these altcoins may appear discouraging to some investors, Santiment suggests it could be a potential indicator of future price increases. The platform highlights this as a buying opportunity for patient investors waiting for a pullback in the market.
Historical Precedent for Rebound
In February 2024, Santiment observed a similar trend of negative crowd sentiment towards large-cap cryptocurrencies. This occurred when Bitcoin was consolidating around $43,000, which fell short of investor expectations following the approval of Bitcoin spot ETFs. This price stagnation contrasted with the upward trend in the final quarter of 2023.
At that time, Santiment reported that XRP, Cardano (ADA), and Solana (SOL) were all experiencing a higher negative crowd sentiment than their historical averages, marking the first of such an instance in over six months.
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Read Also: XRP Price Analysis: Analyst Foresees Resurgence As Bitcoin Holds above $50,000
Notably, just one month later, Bitcoin surged to a new all-time high of $73,650. Similarly, altcoins like SHIB and DOGE experienced significant price increases, reaching new market highs not seen since 2021.
The current market correction has undoubtedly impacted investors who purchased XRP and SHIB at higher prices. However, the decline in positive crowd sentiment, as identified by Santiment, presents a potential buying opportunity for those willing to adopt a long-term investment strategy.
By historically correlating negative sentiment with future price increases, this approach offers a glimmer of hope for investors seeking to capitalize on the current market volatility.
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