XRP Bearish Sentiment Hits 2-Year Peak, Santiment Flags Potential Reversal Signal

yesterday / 21:56 2 sources neutral

Key takeaways:

  • Extreme XRP bearish sentiment may signal a contrarian buying opportunity, as historical data suggests a potential short-term rebound.
  • Watch the $1.10 support level closely; a decisive break could invalidate the bullish contrarian thesis and trigger further declines.
  • XRP's potential relief rally is contingent on broader altcoin market sentiment resetting, despite Bitcoin's relative stability providing liquidity.

Market intelligence platform Santiment has reported that social sentiment surrounding XRP has reached its third-highest level of bearishness, or FUD (fear, uncertainty, and doubt), in the past two years. This extreme negativity follows a steep price decline of approximately 63% over the last nine months, with the token falling from highs near $3.40 to trade around $1.32.

Santiment's analysis indicates that such extreme pessimism has historically aligned with market turning points. The platform's data shows a bullish-to-bearish comment ratio of nearly 1.02:1.00, which it flags as a potential buy signal. The firm suggests that if sentiment remains at these depressed levels, XRP may be entering a low-risk buying zone, as prices often move opposite to the expectations of the retail crowd.

From a technical perspective, XRP is testing a critical support zone between $1.10 and $1.12. Momentum indicators like the RSI, near 32, show the asset is approaching oversold territory, while the MACD remains negative, indicating persistent selling pressure. Analysts note that similar sentiment conditions in the past have preceded short-term price rebounds of 10% to 15%.

The broader altcoin market is also in a cooldown phase, though Bitcoin's relative stability and continued institutional ETF flows provide a backdrop of available liquidity. This environment could support a relief rally for altcoins like XRP if market sentiment resets. However, a decisive break below the $1.10 support could see prices fall toward $0.95, extending the current downtrend.

Disclaimer

The content on this website is provided for information purposes only and does not constitute investment advice, an offer, or professional consultation. Crypto assets are high-risk and volatile — you may lose all funds. Some materials may include summaries and links to third-party sources; we are not responsible for their content or accuracy. Any decisions you make are at your own risk. Coinalertnews recommends independently verifying information and consulting with a professional before making any financial decisions based on this content.