Data shows XRP has experienced one of its most pessimistic days in years, triggered by a thwarted hacking attempt involving a failed $15 billion transaction.
The prominent market intelligence platform Santiment has issued an update on the recent unsuccessful hack incident involving the movement of over 25 billion XRP. Specifically, the update pertained to the crypto market sentiment that followed the incident.
To provide context, on January 14, an exploiter attempted to make a 25 billion XRP payment to the Bitfinex exchange. The transaction was unsuccessful as no tangible XRP token was moved. Notably, Bitfinex CTO Paolo Ardoino confirmed the transfer was a “partial payments exploit.”
However, prominent tracker Whale Alert read the transaction as successful. The report from Whale Alert caused a stir in the crypto community, given that the reported amount constitutes approximately half of XRP’s circulating supply. This included fears of a potential massive sell-off.
Surge in Negative Sentiment Toward XRP Followed
According to Santiment, a notable surge in negative sentiment toward XRP followed the unsuccessful Bitfinex hack attempt.
Santiment pointed out that market traders experienced temporary fear due to the substantial amount involved in the XRP transaction, $15 billion.
The concern stemmed from the understanding that a sale of such magnitude could exert downward pressure on the market value of XRP.
Per the intelligence firm’s assessment, XRP experienced one of its most adverse sentiment days in years on January 14 in the aftermath of the thwarted hacking attempt.
Notably, Santiment’s chart indicated that XRP saw a heightened positive sentiment in November 2023. The heightened sentiment mirrored the asset price above $0.7 at the time.
Potential Upside for Investors
Meanwhile, Santiment highlighted a positive factor lurking within the recent development. It mentioned that despite XRP’s lackluster price performance in 2024 and a low Relative Strength Index (RSI), there is a potential upside amid elevated FUD.
Specifically, Santiment stated that XRP’s RSI sitting at just 42 suggests a favorable risk-reward scenario, indicating that the potential for upward movement outweighs the downside risk for XRP.