XRP Sentiment Dips into Fear Zone, Hinting at Potential Bounce

• XRP social mood turns negative, but fear often sets the stage for short-term price bounces.

• Analyst STEPH IS CRYPTO says XRP is in its weakest phase, possibly before a strong recovery.

• Even bearish signals can offer trading opportunities; market extremes often hint at upcoming moves.

The traders in the XRP market find themselves in circumstances where the social media mood turns sour. According to Santiment, the market is in the ‘Fear Zone,’ where the prices drop but tough comments can be witnessed. Historically, this is the beginning before a notable market revival.

Typically, when retail investors lose confidence, contrarian trades often become frequent, thereby laying the foundation for relief rallies. At the moment, the yellow line for sentiment, which reflects the positive against negative headlines, has fallen below the baseline, an indication that there is increased fear among investors. As a result, the current atmosphere for XRP investments reflects scenarios when intense negative emotions led to stabilization followed by a positive trend.

This scenario plays out while XRP undergoes a corrective cycle. This reveals both danger and potential. Based on Santiment data, two critical areas are identified: the red “Greed Zone” – an area of extreme greed that usually results in short-term maximas – and the green “Fear Zone” – an area long linked to maximas or ranges. At present, the sentiment index has crossed into the green zone just like on other occasions before recovering.

Additionally, analyst STEPH IS CRYPTO emphasize that XRP is in “leg 4 of a corrective structure, the phase where price looks weakest and sentiment turns fully bearish.” Besides highlighting weakness, this phase can signal the final compression before stronger price acceleration, reminiscent of gold’s historical patterns.

Contrasting Views Highlight Market Uncertainty

However, some analysts maintain a cautious stance. BATMAN warns that “$XRP seems to be dying slowly,” citing recent rejections from both bearish trendlines and prior support. He adds, “Stochastic just flashed a death cross,” suggesting potential continued downward pressure.

Nonetheless, even bearish setups can serve as strategic hedges for traders seeking to capitalize on market cycles. Moreover, the divergence between sentiment extremes and technical indicators underscores XRP’s complex landscape.