Ripple’s Market Sentiment Crashes to 2-Month Low Amid 30% Token Plunge

Ripple's community confidence just hit rock bottom—the lowest point in eight weeks—as its token value gets slashed by over a third.

Sentiment in Freefall

Online chatter turns toxic. Optimism evaporates. The digital mood ring for Ripple holders flashes deep red, reflecting a market that's lost its nerve.

The Price Plunge Reality

Numbers don't lie. A more than 30% haircut on the token's value sends a brutal message to portfolios. It's the kind of drop that turns diamond hands into panic sellers overnight.

The Bull Case in Hibernation

Remember the legal wins? The partnership announcements? Right now, the market's treating them like last season's news—interesting history, but not today's price driver. Sentiment's always the first to flee when volatility strikes, leaving fundamentals shouting into the void.

It's a classic crypto scene: wild speculation meets cold, hard price action. For now, the charts are writing a bearish story that even the most ardent XRP maxi can't ignore. Another day, another 'buying opportunity' for those brave enough to catch the falling knife—or just another lesson in the expensive tuition of crypto trading.

Negative commentary on XRP is among the highest in the last two months

According to Santiment’s social metrics, the ratio of negative to positive commentary on XRP has surged to its highest point in the last 60 days. When XRP traded near the $2.00 mark in late July, sentiment plunged to almost entirely negative, only for the price to rally in the following sessions to push above $3.00.

A similar pattern emerged in mid-September, when another spike in negative chatter preceded a bullish charge that carried XRP toward the $3.40 region before sellers returned. In early November, pessimism dominated social platforms again and took the fourth-largest coin by market cap below $2.25, never to return above it to date.

Per one market analyst posting on X, public perception has exaggerated XRP’s moot performance because the token is up by over 200% since September 2024. 

“There are only a few assets in this space that are still up 400%+ from their 2024 lows,” the analyst wrote. “$XRP is one of the few, but after reading comments, you’d think it was down 60%+,” they reckoned.

The analyst said prolonged sideways trading has worn down sentiment, even though XRP has not experienced the type of collapse implied by online commentary. They believe months of consolidation have created an “extremely fearful” outlook, but any eventual breakout could make the rally seen between November 2024 and January 2025 “small by comparison.”

Market fear returns as XRP price tests support

XRP’s current decline has pushed sentiment back toward levels last seen on November 21. At that time, social metrics showed fear dominating discussion just before the price jumped roughly 22% over the next three days. 

We are in a case of a community that is very bullish on Ripple’s token, and a market that is bearish on the coin to a similar extent, so much so that even the launch of spot XRP exchange-traded funds did not trigger an immediate rally.

Tracking its movements in the last seven days, XRP has returned to a horizontal support zone at the $1.80 mark, a level it held during several previous pullbacks. Some technical indicators, like the Stochastic RSI, a momentum indicator used by chart readers to identify overbought or oversold conditions, is currently sitting at extreme oversold levels.

While oversold readings do not guarantee an immediate reversal, they could clear the lane for a price overhaul to the positive side and weaken any efforts by bears to pull down momentum. 

“Markets don’t turn because things look ‘bullish,’” wrote YouTuber and crypto trader STEPH IS CRYPTO on X, “They turn when there’s little fuel left on one side.”

XRP broke down from a multi-day consolidation late Saturday, slipping below $1.93, even as Bitcoin and the rest of the crypto market’s performance was mixed. The token spent much of the weekend session trading between $1.90 and $1.95 before bears forced a decisive break through the lower boundary on Monday. 

The $1.93 area was tested by sellers in several instances, eventually giving in during Monday’s afternoon US trading hours. The most pronounced drop occurred around 13:00 ET yesterday, when XRP slid to approximately $1.89, and trading volumes hit 78% higher than the 24-hour average.

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