XRP Price: Retail Panic Peaks as Smart Money Keeps Buying

Retail traders are hitting the sell button while institutional wallets quietly fill their bags—a classic crypto divergence play is unfolding.

The Fear Gauge Spikes

Social sentiment metrics and exchange inflow data paint a clear picture: the crowd is getting nervous. Short-term holders are locking in losses, reacting to every dip with knee-jerk sells. It's the same emotional cycle that has flushed out weak hands before every major rally.

Institutions See a Discount

On the other side of the trade, custody solutions and over-the-counter desks report steady accumulation. These players aren't scrolling through fear-and-greed indexes; they're executing long-term allocation strategies. Their buying pressure creates a floor the retail panic can't seem to break.

The Liquidity Mismatch

This creates a fascinating market dynamic. Retail sells into shallow order books, providing instant liquidity for larger bids waiting in the shadows. It's a wealth transfer mechanism dressed up as volatility—Wall Street's oldest trick, now running on a blockchain.

When the herd runs for the exits, the smart money just widens the door. Maybe that's why traditional finance needs so many regulations—to protect investors from their own predictable behavior.

TLDR

• XRP social sentiment has dropped to its lowest level since October, entering the “fear zone” according to Santiment intelligence platform
• The last similar sentiment drop on November 21 preceded a 22% price rally over three days
• XRP has fallen 4.6% in 24 hours to below $2.10, making it the worst performer among top 10 cryptocurrencies
• Spot XRP ETFs have maintained continuous positive inflows since November launch, nearing $1 billion in assets under management
• Daily ETF inflows slowed to $12.8 million on Thursday, the lowest since November 21, but total net assets across five funds reached $881 million

XRP has dropped below $2.10 after falling 4.6% in the past 24 hours. The token is now the worst performer among the top 10 cryptocurrencies by market value.

The token currently sits 42% down from its July 2025 all-time high. Despite the price decline, data suggests this may not be a bearish signal.

Intelligence platform Santiment reported on Thursday that social sentiment toward XRP has reached its lowest point since October. The platform’s social data shows the token is experiencing the most fear, uncertainty, and doubt since that time.

Santiment pointed to a similar pattern from two weeks ago. On November 21, XRP sentiment hit comparable lows before the token rallied 22% over the following three days.

XRP (-31% in the past 2 months), unlike Bitcoin, is seeing the most fear, uncertainty, & doubt (FUD) since October, according to our social data.

Circles indicate days where there are abnormally higher BULLISH comments compared to BEARISH comments, about XRP (Greed Zone)… https://t.co/lJNW8zlRwK pic.twitter.com/ZoFmwrtw3h

— Santiment (@santimentfeed) December 4, 2025

Analysts See Potential Buying Opportunity

Justin d’Anethan, head of research at Arctic Digital, told Cointelegraph that traders view prices as stuck in a low-conviction zone NEAR $2. He described this area as close to a capitulation zone.

D’Anethan noted that such zones often mark price bottoms. He said these levels can benefit from legal wins, regulatory clarity, and cross-border payment value.

LVRG Research director Nick Ruck said XRP is holding firmly above its key $2 level. He cited sustained institutional inflows exceeding $750 million into spot ETFs this month as fuel for bullish momentum.

ETF Inflows Slow But Remain Positive

Net inflows to spot XRP exchange-traded funds decreased this week. Thursday’s inflows reached $12.8 million, the lowest figure since November 21 according to SoSoValue data.

The five XRP ETF products have maintained positive flows since their mid-November launch. Total net assets across all funds now stand at $881 million.

The funds are approaching the $1 billion milestone in assets under management. This growth occurred in less than 30 days since launch, making XRP ETFs among the fastest-growing crypto investment products in the United States.

Canary Capital’s XRP ETF opened on November 13 with strong performance. The fund saw more than $59 million in first-day trading volume and $245 million in net inflows.

Bitwise’s fund also performed well at launch, recording over $105 million in early inflows. Other firms including Grayscale and Franklin Templeton have introduced their own XRP products.

REX Shares and Tuttle Capital launched the T-REX 2X Long XRP Daily Target ETF this week. The new product offers traders 200% Leveraged exposure to XRP’s daily performance.

Vanguard announced it will now allow trading of spot crypto ETFs, including XRP-focused funds. The policy change reflects growing demand from clients.

21Shares received SEC approval for its U.S. spot XRP fund. The fund will trade under the ticker TOXR on the Cboe BZX Exchange.

CoinShares withdrew its plans for three proposed crypto ETFs, including a spot XRP fund, by filing a FORM RW with regulators.