Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Data shows users on social media are the most bearish toward XRP in six months, a potential setup for a contrarian move in the asset. XRP Positive/Negative Sentiment Has Plunged Recently
According to data from analytics firm Santiment, social media FUD around XRP has seen a spike recently. The indicator of relevance here is the “Positive/Negative Sentiment,” which tells us about how the bullish and bearish sentiments related to the coin compare on the major social media platforms.
The metric works by first going through posts/messages/threads on these platforms to separate those that contain mentions of the asset. It then puts them through a machine-learning model to divide between positive and negative comments. Finally, it takes the ratio between the counts of each category to find the net situation. Related Reading Ethereum Faces TD Sell Signal At Key Resistance—$4,100 Next? 15 hours ago
Now, here is the chart shared by Santiment that shows the trend in the Positive/Negative Sentiment for XRP over the past month: The value of the metric seems to have plunged in recent days | Source: Santiment on X
As displayed in the above graph, the XRP Positive/Negative Sentiment fell to a low of 0.74 a couple of days back, implying bearish comments were notably outpacing bullish ones. The metric followed up with some recovery, but it lasted only briefly as the latest value has again indicated a dominant negative sentiment, with the ratio standing at 0.86.
This latest wave of FUD around the asset on social media is the strongest since six months ago, when Donald Trump’s tariffs shook the market. If history is anything to go by, though, the bearish sentiment among retail traders could actually turn out to be a positive for the cryptocurrency.
Digital assets have often tended to move in a way that goes contrary to the expectations of the crowd. This means that when the investors are overly bearish, a bottom can become probable.
Given that social media users have been fearful toward XRP for two out of the last three days, it’s possible that a contrarian signal could once again be brewing for it. It now remains to be seen how the asset’s trajectory will look in the coming days, and whether social media sentiment will play a part. Related Reading Social Media Turns Bearish On XRP: Is This A Buy Signal? 16 minutes ago
In the scenario that XRP does rebound from here, a technical challenge could be waiting for it, as explained by analyst Ali Martinez in an X post. The channel that the coin has been trading inside for the last two months | Source:@ali_charts on X
As is visible in the chart shared by Martinez, XRP has potentially been stuck inside a Parallel Channel on the 4-hour timeframe during the last couple of months. The upper boundary of the channel lies at $3.15, which has proven to be a resistance barrier for the coin in this period. “A breakout here could trigger a rally to $3.60!” says the analyst. XRP Price
At the time of writing, XRP is floating around $2.97, up over 4% in the last seven days. The price of the coin seems to have been moving sideways recently | Source: XRPUSDT on TradingView Featured image from Dall-E, Santiment.net, charts from TradingView.com