XRP Sentiment Plunges: Is Fear Signaling a Potential Rally?

Social sentiment surrounding XRP has experienced a significant downturn, pushing it into what's known as the “fear zone.” However, data from the intelligence platform Santiment suggests that this negative sentiment might actually be a precursor to a potential price rally for XRP.

Santiment noted on Thursday that its social data reveals XRP is experiencing the “most fear, uncertainty, and doubt (FUD) since October.” They further elaborated, stating, “The last time we saw near this level of fear from the crowd was November 21, and XRP’s price immediately rallied 22% over the next three days.”

“As of now, an opportunity appears to be emerging just like two weeks ago.” Despite this potential upside, XRP has decreased by 4.6% in the last 24 hours, falling below $2.10. This makes it the worst performer among the top 10 cryptocurrencies by market capitalization. Currently, the token is 42% below its all-time high from July 2025.

Why Negative Social Sentiment Isn't Always Bearish

Cryptocurrency analysts generally agree with Santiment's assessment that XRP's decline doesn't necessarily signal a bearish outlook. Justin d’Anethan, Head of Research at private markets advisory firm Arctic Digital, told Cointelegraph, “XRP is looking less like a ripple and more like a puddle.”

He elaborated that traders are observing prices stuck in a low-conviction range, close to a capitulation zone around the $2 mark. However, he added, “This isn’t all bearish, though, as those often mark a bottom that can then capitalize on legal wins, regulatory clarity, a US-first approach, and a long-standing cross-border payment value.”

Nick Ruck, Director of Research at LVRG Research, pointed out that “despite the bear market, XRP is holding firmly above its key $2 level as growing bullish momentum is fueled by sustained institutional inflows exceeding $750 million into spot ETFs this month alone.”

XRP Spot ETF Flows Slow Down

Net inflows into XRP spot exchange-traded funds have slowed considerably this week, even after a positive initial trading period. According to SoSoValue, Thursday saw inflows of $12.8 million, the lowest since November 21. Nonetheless, these products have maintained positive inflows since their launch in mid-November, with a total of $881 million in net assets across the five funds.


Risk Warning: This article is provided for informational purposes only and does not constitute investment advice, investment research, or a recommendation to trade. The views expressed are those of the author and do not necessarily reflect the position of Markets.com. When considering shares, indices, forex (foreign exchange), and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and may not be suitable for all investors. Leveraged products can result in capital loss. Past performance is not indicative of future results. Before trading, ensure you fully understand the risks involved and consider your investment objectives and level of experience. Cryptocurrency CFD trading restrictions may apply depending on jurisdiction.

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