As XRP continues to trail the broader crypto market’s recovery, bearish sentiments have dominated the scene, but Santiment believes this is extremely bullish.
For context, amid the ongoing market rebound, Bitcoin recently surged to a new all-time high above $126,000, and Ethereum rallied to a level within 4% of its record peak, yet XRP still can’t break past the $3 barrier.
XRP Seeing Highest Level of Retail FUD in 6 Months
XRP’s sluggish pace has frustrated traders and triggered a new wave of doubt and bearish comments across the community. However, according to blockchain analytics firm Santiment, this rising negativity could actually be a good thing.
Santiment’s latest data shows that XRP is now experiencing its highest level of retail FUD in six months, a level last seen during the tariff-related market turmoil earlier this year.
The firm noted that bearish commentary has outweighed bullish sentiment for two of the last three days, which indicates a potential price bottom. Santiment explained that markets tend to move opposite to what retail traders expect. As a result, when fear dominates, it often leads to a rebound.
XRP’s Historical Sentiment Trends
The accompanying chart, which tracks XRP’s price and crowd sentiment, shows that in early September, XRP traded around $2.8 and pushed higher as optimism grew.
During this period, bullish commentary outweighed bearish talk, with the bullish-to-bearish ratio staying above 1.0, showing that most traders expected higher prices. This sentiment helped lift XRP above $3 by the middle of September.
The mood hit a peak on Sept. 17, when the bullish-to-bearish ratio jumped to 3.21. Traders were euphoric, and XRP’s price topped around $3.13. Nonetheless, Santiment flagged this level of optimism as a “reliable top signal,” meaning the market had become too confident for its own good. Soon after, XRP lost momentum, and prices began to drop.
Growing Bearish XRP Sentiments Actually Bullish: Santiment
From Sept. 18 to 30, XRP fell below $2.90. Consequently, sentiment flipped quickly as the community’s excitement turned into frustration. Moreover, bearish discussions grew louder, and traders started doubting the rally.
Notably, at the start of October, negativity dominated the conversation. Data from the chart shows that on Oct. 4, the bullish-to-bearish ratio fell to 0.74, with XRP sitting around $2.9. Two days later, on Oct. 6, the ratio rose slightly to 0.86, while the price continued to hover around $2.9 to $3.
Despite the small uptick, the crowd stayed fearful. Santiment labeled both of these readings as “reliable buy signals,” suggesting that retail traders were showing signs of panic, an emotion that often appears just before a recovery.
Analysts Remain Bullish
Meanwhile, analyst CryptoInsightUK recently pointed out that XRP’s $2.72 to $2.75 zone remains a major structural level. He said this area has held strong since July’s rally and once acted as resistance during XRP’s rise from $0.5. Holding above it shows that buyers are still defending the trend. He added that breaking above $3.17 and $3.65 would confirm stronger upside momentum.
The analyst also compared the current structure to the market expansion from November last year, when a breakout followed the 4.236 Fibonacci extension. If XRP repeats that setup, he expects a move toward $6.90, with the next larger wave potentially pushing the token between $8 and $12.
Market commentator Zach Rector is also optimistic. He said once the ongoing U.S. government shutdown ends, pending XRP exchange-traded funds (ETFs) could finally go live. He believes the ETF launch would trigger new institutional demand and help XRP reach double-digit prices.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
