ETH, XRP, and Meme Coins Spark as Selling Sentiment Responds to Short-Term Catalysts

Crypto enters 2026 with a positive step, but the sales sentiment remains weak and driven by immediate news motives.

Crypto market sentiment has improved in early 2026 as prices in major digital assets are rising from last year’s extended correction. New data shows retail traders growing more optimistic as ETF headlines and news stories influence crypto price movements.

According to the latest social and sentiment data compiled by Sentiment, there has been renewed optimism among retail traders, as recent price action has begun to moderate and Bitcoin (BTC) is testing key sentiment levels. Earnings are not limited to major cryptocurrencies. In fact, several altcoins and meme coins also posted strong gains.

The New Retail FOMO

Social media chatter across platforms such as X, Reddit, and Telegram has changed significantly and showed a positive tone after months of bearish sentiment following Bitcoin’s October 2025 peak.

Bitcoin is always at the center of the narrative. Its recent moves have been heavily influenced by macroeconomic factors and general financial market volatility. Top ETF flow headlines played a key role, especially after US Bitcoin ETFs recorded one-day net outflows led by major issuers such as BlackRock and Fidelity.

The pullback coincided with traders taking risks ahead of key US economic data and expectations of interest rate cuts, confirming the view that Bitcoin is increasingly trading as a more sensitive asset.

Ethereum has seen a very mixed sentiment profile. According to Santiment, the discussion about the world’s largest altcoin by market cap has focused less on price action and more on staking-related developments, including strong rewards tied to regulated investment products. While interest in the catch has increased, sentiment remains mixed. This shows the lack of a clear catalyst for ETH in early 2026.

This is true for many prominent players, as retail sentiment remains volatile and highly reactive to short-term catalysts.

You may also like:

For example, Ripple (XRP) stood out with an almost weekly gain of 14%. This coincided with the increased attention surrounding XRP’s January escrow unlock, which released 1 billion tokens, with a large portion reportedly re-locked. The planned supply event, combined with strong pre-year momentum, spurred increased retail participation. However, optimism rose sharply as traders tried to buy perceived dips, followed by renewed caution as prices corrected from recent highs.

Solana (SOL) also saw a huge jump in sentiment and price, which was largely shaken by institutional headlines, including a Reuters report that Morgan Stanley filed with the US Securities and Exchange Commission (SEC) for ETFs linked to Bitcoin and Solana.

Meme Coins Rebound

Meme coins have also come into the limelight. The OG, Dogecoin (DOGE), saw double-digit gains during the week, supported in part by strong performance from the 21Shares 2x Long Dogecoin ETF, which posted gains of around 38-39% in the early days of 2026. The ETF’s performance contributed to new gains across the meme sector.

Several meme coins have also seen synchronized whale buying and social hype this year.