Trader sentiment has dipped sharply, with XRP facing its most fear-driven moment of the year, Santiment data shows.
A widespread mood of pessimism is taking hold among cryptocurrency traders, with negative sentiment particularly concentrated around Ripple’s XRP token.
According to data from analytics firm Santiment, this collective fear is being interpreted by some observers as a potential contrarian signal that often comes before a market bottom.
Market Mood Sours as Key Assets Test Resistance
Santiment revealed a notable shift in social media commentary across leading digital assets. For Bitcoin (BTC), the ratio of bullish to bearish comments is now nearly even, a level significantly lower than its historical average.
Ethereum (ETH) is faring only slightly better, with just over 50% more positive remarks than negative ones. However, the most dramatic reading is for XRP, where less than half of all social media comments are optimistic, marking one of its most fear-driven moments this year.
The market intelligence platform suggested that when crowd sentiment turns this negative, it often indicates a point of capitulation, where retail traders sell off, allowing major holders to accumulate assets at lower prices before a potential recovery.
This gloomy outlook has come at a time when prominent cryptocurrencies are testing important technical levels. BTC is hovering around $104,000, with analysts like Ted Pillows noting that a rejection here could push the price back toward $100,000.
Meanwhile, ETH did manage to climb back above $3,500; however, its stability remains uncertain. Popular analyst Michaël van de Poppe observed that the market lacks excitement and needs a clear break above $108,000 for BTC to regain momentum.
You may also like:
XRP’s Pivotal Moment Amid ETF Debut
The intense focus on XRP is set against the backdrop of a significant milestone: the launch of the first U.S. spot XRP ETF on the Nasdaq exchange today. This event has created a clash between optimistic long-term structural developments and immediate negative trader sentiment.
Despite the prevailing fear, the Ripple token’s price has shown resilience, trading around $2.50 at the time of writing. It has gained over 8% in the last seven days but remains 31% below its all-time high of $3.65, set in July.
Investors are closely monitoring the $2.41 level, which is considered critical Fibonacci support. According to market watchers, failure to hold this zone could lead to a deeper correction toward $2.00.
Still, the fundamental picture for XRP presents a paradox. On the one hand, experts have pointed to a potential “supply crisis,” with exchange reserves, such as those on Binance, falling to their lowest level in almost a year. Combined with estimates of $4 to $8 billion in potential ETF inflows, the situation has set the stage for a supply shock.
On the other hand, they are warning of a “sell the news” event, where the official ETF launch could trigger short-term selling pressure despite positive long-term prospects.
Now, as the U.S. market opens and institutional flows begin, the conflict between fear and fundamentals will likely determine XRP’s next big move.
SECRET PARTNERSHIP BONUS for CryptoPotato readers: Use this link to register and unlock $1,500 in exclusive BingX Exchange rewards (limited time offer).
