Retail optimism around XRP and Ethereum has climbed to its highest level in five weeks, according to blockchain analytics platform Santiment, signaling growing fear of missing out even as both assets struggle to establish sustained upward momentum.
The firm noted that the sharp rise in bullish sentiment may be getting ahead of actual price performance, increasing the risk of short term volatility.
XRP and Ethereum Outpace Bitcoin in Trader Optimism
In a July 13 post on X, Santiment reported that XRP recorded a bull to bear ratio of 3.02, meaning there were more than three bullish social media posts for every bearish one. Ethereum followed with a ratio of 2.31, placing it firmly in what the firm described as mild FOMO territory.
Bitcoin, by comparison, posted a much more balanced reading of 1.40, suggesting traders remain relatively cautious toward the leading cryptocurrency.
Although both Bitcoin and Ethereum started Monday on a positive note, their gains faded as trading progressed. Santiment warned that extreme retail enthusiasm often emerges at the wrong time.
According to the analytics firm, crypto markets frequently move against overwhelming crowd expectations. When traders become excessively bullish while prices are already weakening, it can increase short term downside pressure or delay a recovery.
By contrast, Bitcoin’s more neutral sentiment could prove constructive, as there is still room for investors to become more optimistic if market conditions improve.
Crypto analyst Xaif Crypto echoed that view, arguing that Bitcoin’s relatively subdued sentiment leaves greater upside potential, while elevated optimism surrounding XRP and Ethereum could temporarily cap their gains.
Price Performance Paints a Mixed Picture
XRP was trading around $1.07 after slipping below the $1.08 resistance level identified by analyst Cryptorphic. The token has declined roughly 5% over the past week and nearly 7% over the last month.
According to Cryptorphic, XRP remains vulnerable to additional downside as long as it stays below the $1.08 threshold.
Ethereum has shown greater resilience. The second largest cryptocurrency was trading closer to $1,800, posting a 1% weekly gain and rising more than 6% over the past month. Although ETH briefly moved above $1,800 during the weekend before retreating, several analysts believe the current structure could support a move toward $2,500 if momentum strengthens.
Bitcoin, meanwhile, eased after a strong start to July that saw it rebound from roughly $57,700 to $64,000. The asset was trading below $63,000 at the time of writing.
On chain data also showed continued accumulation by large investors, with wallets holding between 10,000 and 100,000 BTC adding approximately 11,000 BTC over the past week, suggesting institutional demand remains intact despite recent market volatility.
Institutional Activity Around XRP Shows Signs of Cooling
Despite improving retail sentiment, XRP is facing weaker institutional participation.
Spot XRP exchange traded funds recorded their first week of net outflows in more than two months, pointing to softer demand from larger investors.
On chain metrics also weakened noticeably. Transactions worth more than $1 million fell sharply from 70 to just two within roughly a week, while the pace of new wallet creation on the XRP Ledger has slowed compared with earlier this year.
The divergence between rising retail enthusiasm and cooling institutional activity suggests that while sentiment has improved, stronger fundamental demand may be needed to support a sustained rally.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
