XRP Hits ‘Extreme Fear’ After 19% Drop
Analysis
Price Impact
HighXrp has experienced a significant 19% drop from year-to-date highs, pushing social sentiment into 'extreme fear' territory among retail investors. this level of fear often precedes significant market movements.
Trustworthiness
HighThe analysis is based on santiment's social sentiment data, which is a reputable source for market psychology, coupled with historical market observations regarding contrarian indicators during extreme fear.
Price Direction
BullishDespite the recent drop, the 'extreme fear' sentiment among retail investors is often a strong contrarian indicator, suggesting a potential local bottom. historically, prices tend to move opposite to retail expectations during such periods. additionally, ripple ceo brad garlinghouse and standard chartered have made bullish predictions for xrp's future.
Time Effect
ShortThe 'extreme fear' sentiment is typically a signal for a short-term reversal or bounce, as late shorts get squeezed and the market finds a local bottom before a potential upward trend.
Original Article:
Article Content:
Cover image via U.Today Read U.TODAY on Google News The retail crowd is capitulating on XRP, according to the recent data provided by Santiment. Advertisement However, for contrarian investors, that might be the signal they have been waiting for. According to the latest social sentiment data, the XRP market has fallen into "Extreme Fear" territory. HOT Stories XRP Hits ‘Extreme Fear’ After 19% Drop U.Today Crypto Review: Ethereum (ETH) Loses 30-Day Progress, Shiba Inu's (SHIB) End of Bears; Bitcoin's (BTC) Last Recovery Chance U.Today Crypto Digest: Strategy (MSTR) Buying Bitcoin Again, Bitmine Adds $108 Million Worth of Ethereum, XRP Price Flashes Major Warning XRP Price: Ripple CEO Predicts New All-Time Highs for Crypto Markets This comes after a disappointing 19% correction from its year-to-date highs on January 5. Advertisement The drop has soured the mood among small retail traders. They went from euphoria to pessimism within less than three weeks. card Since peaking near $2.40 in the first week of January, XRP has bled value. The popular altcoin recently plunged back under the psychological $2.00 mark. However, seasoned market watchers note that such extreme negative sentiment often acts as a counter-indicator. Historically, when the "crowd" consensus leans heavily bearish, prices have a tendency to move in the opposite direction. Late shorts end up being squeezed. Advertisement "Prices move the opposite to retail's expectations more often than not," the data analysis suggests. If history repeats, the current wave of pessimism could mark a local bottom, setting the stage for XRP to challenge resistance levels once the fear subsides. Bullish prediction from Ripple CEO In the meantime, Ripple CEO Brad Garlinghouse appears to be unfazed by the current market correction. As reported by U.Today, the Ripple boss recently went on record, predicting that cryptocurrency prices could surge dramatically higher. A recent research note from Standard Chartered projected that XRP could surge to $8.00 later in 2026. #XRP Price Prediction