XRP falls into extreme panic zone, Santiment says historical signals point to a new rebound

XRP-0,14%

January 22 News, on-chain data platform Santiment’s latest report shows that after XRP prices peaked in early 2026 and then fell nearly 20%, market sentiment has slipped into the “extreme panic” zone. Currently, XRP is trading below $2, with retail investor confidence significantly undermined, but several historical indicators are signaling potential contrarian opportunities, suggesting a rebound window is brewing.

Santiment pointed out that the positive-to-negative sentiment ratio for XRP has continued to decline from 1.873 on January 20 to approximately 1.794, reflecting increasing pessimism about Ripple’s prospects. Historical data indicates that when this indicator falls below a critical threshold, it often corresponds to a price bottoming phase, as selling pressure is emotionally cleared out and funds begin seeking entry points at lower levels.

This recent decline has also been accompanied by a contraction in capital flows. On January 21, the US spot XRP ETF experienced approximately $53 million in net outflows, intensifying short-term pressure. However, such concentrated outflows have historically coincided with price turning points, providing conditions for a rebound.

Looking back to January 2, 2026, XRP recovered from previous losses amid extreme panic, then quickly rose about 29% in a short period, reaching a yearly high of $2.41. After the sentiment collapse on January 18, XRP also experienced a rapid rebound, once returning close to $2. These cases show that when the market is uniformly bearish, it often creates space for contrarian moves.

Currently, XRP is priced at $1.94, up 2.11% intraday. Although it has fallen 7.5% over the past week, it has already rebounded from a low of $1.8. With Brad Garlinghouse set to speak at Davos, Switzerland, market expectations for sentiment recovery are rising. If the panic indicator continues to stabilize, the XRP price structure could lay the foundation for the next upward move.

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