XRP’s price action has underperformed most top cryptocurrencies that have rallied alongside Bitcoin in the past 48 hours. This consolidation comes after a failed attempt to break through resistance near $3.10, which has seen the token slip back down below $3.
However, recent on-chain data from analytics platform Santiment shows that despite XRP’s slower pace, something important is brewing beneath the surface, and it could signal a buying opportunity.
Growing Negative Sentiment Around XRP
According to Santiment’s latest market data, XRP is currently experiencing its highest level of retail fear, uncertainty, and doubt (FUD) in the last six months. The last time the altcoin experienced this high level of retail fear was when Trump’s tariff announcements unsettled markets earlier this year.
Data from Santiment shows that bearish commentary about the token on social media has significantly outweighed bullish sentiment over the past three days. Particularly, negative sentiment has dominated two out of the last three days. The ratio of bullish to bearish mentions dropped to 0.86 on October 6 and 0.74 on October 4.
Such moments of excessive pessimism among retail traders have always coincided with local price bottoms for the token. The same sentiment imbalance that came before reversals in the past is reappearing and the current fear could once again be a precursor to recovery in the coming days.
The chart data below, which was shared by Santiment on the social media platform X, shows XRP’s bullish-to-bearish ratio reached 3.21 on September 17, and this was a reliable top signal that was followed by a price correction. On the other hand, the latest readings from October reveal an opposite setup, one where fear is dominating.
Is Buying The Altcoin A Good Idea?
Based on the latest on-chain data, Santiment believes that now could be one of the most favorable moments to buy XRP. The crowd’s tendency to sell or express skepticism during these emotional lows gives opportunity for smart traders to accumulate at lower prices before the next uptrend.
Santiment’s comment on X noted that crypto prices tend to move opposite to retail expectations, with similar FUD being a good sign of a potential breakout. This means that the current surge in bearish chatter might actually point to an upcoming rally, especially if a Spot XRP ETF is launched in October.
Despite its price struggles and losing both $3 and $2.9 in the past 48 hours, the altcoin has managed to hold above $2.8, which has proven to be one of the most important supports since August, alongside $2.72. Therefore, XRP’s ability to hold above its short-term support around $2.80 despite mounting negative sentiment reinforces the idea that downside pressure could soon exhaust itself and pave the way for a bounce to retest $3.10.
At the time of writing, XRP is trading at $2.87, down by 3.3% in a 24-hour timeframe.
Featured image from Adobe Stock, chart from Tradingview.com
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