FOMO unlikely to hinder further market growth

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

Despite major rallies in the market, Santiment’s report highlights a surprising level of neutrality in market sentiment, which could allow continued growth as the uptrend matures.

📊 The enthusiasm from a week ago shows traders’ fatigue, as altcoins have yet to slow down their historic rise. Even as cryptocurrencies like XRP (+444%), Cardano (+280%), and Stellar (+512%) all have historical 30-day extensions, retail traders appear to be growing… pic.twitter.com/A6Mae1z7i8

— Santiment (@santimentfeed) December 3, 2024

Particularly in the last 30 days, major altcoins such as Stellar (XLM), XRP (XRP), and Cardano (ADA) have achieved record-breaking gains.

Stellar is up an impressive 512% last month, XRP is up 444%, and Cardano is up 280%. Market participants observed these dramatic price movements, but enthusiasm visibly waned after a profit-taking wave in late November.

In context, this wave of profit-taking dominated the scene after Bitcoin (BTC), the industry’s first child, attempted to surpass the $100,000 mark. The bearish trend led to a pullback for BTC and the rest of the market, but a recovery has since taken place.

Despite the recovery, Santiment’s findings suggest that excitement for these assets has not translated into widespread FOMO. Retail traders appear to have stepped back after benefiting from earlier gains, leading to a quieter atmosphere.

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

The reduced noise surrounding the best-performing assets means the market can experience sustained upward momentum without the volatility often caused by FOMO-induced buying.

This period of neutrality in investor sentiment synchronizes with historical patterns in which quieter periods precede bullish moves.

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

It’s a great painting.

This bull market is not over yet.

It started recently and $XRP ignited the fire.

I expect similar feedback to occur in the coming period. #Altcoinsbut I also expected this entire market to grow 10x next year.

We’ve just started. pic.twitter.com/vcii92JxfM

— Michaël van de Poppe (@CryptoMichNL) December 2, 2024

He noted that the scene could witness 10x growth next year as XRP triggers a bullish trend in the altcoin market. However, horizontal movements are expected for another three to four months.