XRP’s Extreme Fear Level Sparks Déjà Vu: Echoes of Past 22% Rally Emerge

Extreme fear grips the XRP market—again. This isn't the first rodeo for the embattled token, and history has a tantalizing pattern to show for it.

When Fear Becomes Fuel

Market sentiment has plunged into 'Extreme Fear' territory, a psychological state that often precedes sharp reversals. The last time the crowd was this spooked, XRP ripped a staggering 22% rally out of thin air. It's the classic contrarian playbook: maximum pessimism frequently marks a local bottom.

The Ghost of Rallies Past

The parallel is uncanny. Technical setups, funding rates, and social media despair are painting a near-identical picture to the prelude of that previous surge. It suggests the market is once again primed for a violent squeeze against the prevailing sentiment—a move that would leave the over-leveraged shorts, as usual, holding the bag.

A Cynical Note on Market Psychology

Never underestimate the market's ability to make the majority wrong at the most painful moment. It's almost as if the whole system is designed to transfer wealth from the emotional to the disciplined—or at least, that's what the finance gurus selling courses will tell you.

So, is history rhyming or repeating? Watch the fear. When it peaks, the bounce tends to follow. Just don't expect a thank-you note from the suits on Wall Street.

In Brief

• The social sentiment around XRP reaches its lowest level since October, according to the Santiment platform.
• This drop places the token in a ‘fear zone,’ historically associated with price rebounds.
• In a similar previous case on November 21, XRP jumped 22 % in three days.
• The contrast between negative social sentiment and technical/institutional signals calls for a nuanced analysis.

The Social Sentiment of XRP Crashes Sharply, Down to the Fear Zone

According to the latest data from the analytics platform Santiment, the social sentiment around XRP plunged to its lowest level since October, entering what analysts call the fear zone, while an expert reveals the invisible brake to its growth.

This situation might seem critical, but it is not unprecedented. Santiment reminds that the last time such a fear level was reached, the crypto price rebounded 22 % in three days.

“The last time such a fear level was observed in the community was on November 21, and the crypto price immediately jumped 22 % over the following three days,” the platform emphasizes. It adds : “an opportunity seems to present itself again, as it did two weeks ago”.

Here are the main factual elements to remember :

• The social sentiment of XRP is at its lowest since October, according to Santiment ;

• On November 21, a similar fear level preceded a +22 % rally in 3 days ;

• XRP shows a 4.6 % drop over the last 24 hours, falling below $2.10 ;

• This is the worst performance among the top ten cryptocurrencies by market cap during this period ;

• The crypto is currently down 42 % from its all-time high of last July ;

• According to Santiment, this sentiment drop could create a buying opportunity, as has been seen in similar setups.

While these signals obviously do not guarantee a turnaround, they provide a reading of the crypto market evolution: extreme fear might be a turning point rather than a signal of pullback.

Institutional and Technical Supports Keep XRP Afloat

While attention focuses on the emotional climate of the market, some actors underline another reality: the technical robustness of XRP and the continued institutional interest.

Justin d’Anethan, research head at Arctic Digital, stated that “XRP looks less and less like a wave and more and more like a puddle”. According to him, prices stagnate in an area of low conviction, close to capitulation.

However, he insists : “this is not entirely bearish, as these zones often mark a bottom that can then benefit from legal advances, regulatory clarity, a US approach, and the value of cross-border payment”.

Nick Ruck, director of LVRG Research, points to the resilience of the $2 threshold, even in a generally bearish market. He explains this hold partly by institutional inflows : “a persistent bullish momentum is fueled by sustained institutional flows exceeding $750 million in spot ETFs this month”.

Although daily inflows have slowed, only $12.8 million on Thursday, the lowest level since November 21, according to SoSoValue, cumulative flows remain positive since these products were launched mid-November, with $881 million in net assets spread across five funds.

The xrp price moves in a context of tension between strong technical indicators and degraded social sentiment. If history repeats itself, this emotional retreat phase could precede a bullish move. The coming days will be decisive to confirm or not this scenario.

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