Social sentiment regarding XRP has plunged into the “fear zone,” yet the intelligence platform Santiment notes that previous declines of this nature have triggered a rally for the token.
Santiment reported on Thursday that its social metrics indicate XRP (XRP) is experiencing “the most fear, uncertainty, and doubt (FUD) since October.”
“The last time we observed such a high level of fear among the crowd was on November 21, when XRP’s price surged 22% over the subsequent three days,” it stated.
“Currently, a similar opportunity seems to be surfacing just as it did two weeks ago.”
XRP has decreased by 4.6% in the past 24 hours, falling below $2.10, making it the poorest performer among the top 10 cryptocurrencies by market capitalization. The token is now 42% lower than its all-time high in July 2025.
Negative social sentiment isn’t necessarily bearish
Crypto analysts concur with Santiment that XRP’s decline isn’t inherently negative.
“XRP appears to be less like a ripple and more like a puddle,” remarked Justin d’Anethan, head of research at the private markets advisory firm Arctic Digital, to Cointelegraph.
Traders perceive prices trapped in a low-conviction phase, approaching a capitulation zone around the $2 mark, he stated.
“However, this isn’t entirely bearish, as such conditions often indicate a bottom that may benefit from legal victories, regulatory clarity, a US-first strategy, and long-established cross-border payment utility.”
Related: XRP faces a ‘now or never’ situation as traders target a rally to $2.50
LVRG Research director Nick Ruck mentioned that “in spite of the bear market, XRP is steadfastly above the critical $2 level, bolstered by increasing bullish momentum driven by sustained institutional inflows exceeding $750 million into spot ETFs this month alone.”
XRP ETF inflows decline
Net inflows into spot XRP exchange-traded funds have significantly slowed this week, despite a positive trading outset. Inflows on Thursday were $12.8 million, the lowest since November 21, according to SoSoValue.
Nevertheless, the products have maintained positive inflows since their launch in mid-November, totaling $881 million in net assets across the five funds.
Magazine: Indian investors look beyond Bitcoin, Japan to soften crypto tax: Asia Express
