ETH, XRP, and Meme Coins Shine as Retail Sentiment Reacts to Short-Term Catalysts

Crypto market sentiment has improved at the start of 2026 as prices across major digital assets rebound from last year’s extended correction. New data shows retail traders growing more optimistic as ETF headlines and macro narratives increasingly influence crypto price movements.

According to the latest social and sentiment data compiled by Santiment, there has been a renewed optimism among retail traders, even as recent price action has begun to flatten and Bitcoin (BTC) tests key psychological levels. Recovery has not been limited to large-cap cryptocurrencies. In fact, several altcoins and meme coins also posted strong gains.