According to Santiment analysts, the cryptocurrency market has been showing signs of FOMO in recent days.
Santiment analysts expressed their views in their blog post:
“We have detected a large number of divergences in the market leading to a temporary pause in the growth of ETH. These divergences show that the risk appetite of the market is relatively low, with some participants expecting a drop, while others expect strong breakouts of 32,000 in BTC and 2,000 in ETH.”
Santiment has observed similar patterns in the behavior of wealthy investors, with whales reducing their Bitcoin holdings until recently. However, after the successful implementation of the Shappela update and Ethereum surged above $2,000, the situation started to change.
Santiment Analysts Explain Ways to Recognize FOMO
Santiment warns that it's crucial to stay alert and watch for signs of FOMO as the market changes. Recognizing FOMO can help market participants choose between two potential strategies: "going with the tide" (a short-term preference for "long" positions) or "going against the crowd" (a short- or medium-term preference for "short" positions), analysts say. ).
Indicators of FOMO include a significant increase in individual savings, a decrease in stablecoin holdings, and an increase in overall network activity.
Santiment also said the following to identify FOMO and the market peak:
“Alongside these indicators, an increase in funding rates and an increase among Youtubers that this rise 'represents a path to an all-time high' may indicate that we are approaching the local market peak.”
*Not investment advice.
What a Scamm !!!