XRP is creating waves by igniting a frenzy of bullish sentiment. Following an impressive 11% surge, traders everywhere proclaim the altcoin as the next big thing. With bullish narratives emerging from every corner, the Ripple-affiliated token is garnering massive hype. However, data platforms like Santiment earlier warned that these tokens were driven by intense FOMO [fear of missing out], positioning them as high-risk, high-reward investments this week.
Trader sentiment is following the price action. With XRP making an emergence this week, bullish narratives have erupted. On the other end of the spectrum, Cardano is seeing the most bearishness in over a year. Counter-trading the crowd’s consensus could prove profitable.
On the other end of the spectrum, Cardano’s crowd sentiment is at its most bearish in over a year. Market experts suggest going against the prevailing market sentiment—known as counter-trading which can sometimes be a profitable strategy. When the majority are bearish, it could signal a potential bottom, an opportunity for contrarian investors to buy low and benefit from a potential recovery. In a nutshell, while the crowd is selling or shorting Cardano, savvy traders might see this as a chance to capitalize on an eventual price rebound.
Price-wise, the leading altcoin has recorded over 35% surge after a weekly bottom. Continuing its impressive upward trajectory, the altcoin also recently hit $0.56. The latest technical analysis also validates the sustained rally.
XRP: Massive Bull Pennant Breakout Looms
A chart of XRP relative to the US dollar over the last three months suggests that the token may be entering a bull pennant breakout. A bull pennant is a technical indicator that suggests a continuation of an uptrend.
Market analysts believe this could be one of the most significant breakouts in crypto history. This is because the bull pennant on the chart is seven years long. It’s a chart pattern that shows a period where the price goes up, then moves sideways in a small, tight range [the consolidation]. This pattern usually ends with another big move up.
Usually, it lasts for a few weeks or months, but in the XRP case, it lasted for seven years. Market experts anticipate a huge price jump once this pattern finally breaks out.