$XRP -1.51%

Monitoring market sentiment is crucial for investors to assess the mood of financial markets and make informed decisions. It represents the overall stance or feeling among traders towards a particular market or asset, reflecting whether they are optimistic (bullish stance) or pessimistic (bearish stance) about future price movements ¹.

To track market sentiment, investors use various indicators, including:

- *Commitment of Traders (COT)*: Published weekly by the Commodity Futures Trading Commission (CFTC), it shows the net long and short positions.