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XRP’s Extreme Fear Level Mirrors Past 22 % Rally

21h05 ▪ 4 min read ▪ by Luc Jose A.
Getting informed Altcoins
Summarize this article with:

The social sentiment around XRP has just dropped to its lowest level since October, according to Santiment data. The crypto is going through what the platform describes as a “fear zone”. This emotional setback contrasts with past movements, where similar phases had preceded a marked rebound. In a tense crypto market, XRP could once again surprise.

A worried trader looks into a bottomless pit where several cryptos are falling, with XRP in the foreground.

In Brief

  • The social sentiment around XRP reaches its lowest level since October, according to the Santiment platform.
  • This drop places the token in a ‘fear zone,’ historically associated with price rebounds.
  • In a similar previous case on November 21, XRP jumped 22 % in three days.
  • The contrast between negative social sentiment and technical/institutional signals calls for a nuanced analysis.

The Social Sentiment of XRP Crashes Sharply, Down to the Fear Zone

According to the latest data from the analytics platform Santiment, the social sentiment around XRP plunged to its lowest level since October, entering what analysts call the fear zone, while an expert reveals the invisible brake to its growth.

This situation might seem critical, but it is not unprecedented. Santiment reminds that the last time such a fear level was reached, the crypto price rebounded 22 % in three days.

“The last time such a fear level was observed in the community was on November 21, and the crypto price immediately jumped 22 % over the following three days,” the platform emphasizes. It adds : “an opportunity seems to present itself again, as it did two weeks ago”.

Here are the main factual elements to remember :

  • The social sentiment of XRP is at its lowest since October, according to Santiment ;
  • On November 21, a similar fear level preceded a +22 % rally in 3 days ;
  • XRP shows a 4.6 % drop over the last 24 hours, falling below $2.10 ;
  • This is the worst performance among the top ten cryptocurrencies by market cap during this period ;
  • The crypto is currently down 42 % from its all-time high of last July ;
  • According to Santiment, this sentiment drop could create a buying opportunity, as has been seen in similar setups.

While these signals obviously do not guarantee a turnaround, they provide a reading of the crypto market evolution: extreme fear might be a turning point rather than a signal of pullback.

Institutional and Technical Supports Keep XRP Afloat

While attention focuses on the emotional climate of the market, some actors underline another reality: the technical robustness of XRP and the continued institutional interest.

Justin d’Anethan, research head at Arctic Digital, stated that “XRP looks less and less like a wave and more and more like a puddle”. According to him, prices stagnate in an area of low conviction, close to capitulation.

However, he insists : “this is not entirely bearish, as these zones often mark a bottom that can then benefit from legal advances, regulatory clarity, a US approach, and the value of cross-border payment”.

Nick Ruck, director of LVRG Research, points to the resilience of the $2 threshold, even in a generally bearish market. He explains this hold partly by institutional inflows : “a persistent bullish momentum is fueled by sustained institutional flows exceeding $750 million in spot ETFs this month”.

Although daily inflows have slowed, only $12.8 million on Thursday, the lowest level since November 21, according to SoSoValue, cumulative flows remain positive since these products were launched mid-November, with $881 million in net assets spread across five funds.

The XRP price moves in a context of tension between strong technical indicators and degraded social sentiment. If history repeats itself, this emotional retreat phase could precede a bullish move. The coming days will be decisive to confirm or not this scenario.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.