XRP edged closer to the $2 threshold during early U.S. hours on Friday, as the social sentiment surrounding the token experienced a notable decline. New insights from analytics firm Santiment reveal the most significant stretch of bearish commentary since October.
This shift in public perception follows a two-month decline of about 31%, making the token susceptible to further downturns if the appetite for risk diminishes among major assets.
Santiment’s sentiment model, which examines the ratio of positive to negative social messages relative to price, indicates that XRP has entered what the firm refers to as a fear zone, where negative commentary heavily overshadows bullish discussions.
Past instances of similar sentiment readings earlier this year have coincided with capitulation phases from short-term holders, though not all such scenarios have resulted in lasting market bottoms.
The firm drew a comparison to November 21, when a similar surge of negative messages preceded a temporary rebound of about 22% over the next three days before momentum diminished. It advised traders to watch whether sentiment stabilizes or continues to decline, as such shifts often influence positioning in retail-focused markets.
While XRP has performed relatively better than several smaller tokens, it remains sensitive to swift deleveraging and the unwinding of carry trades linked to U.S. data releases and changes in global risk appetite.
