Data suggests that extreme XRP hype often appeared near local tops, while deep fear historically created rebound opportunities afterward.
Ripple (XRP) has been trading lower over the past month. The price briefly jumped above $1.50 a few times, but those rallies faded quickly as selling pressure returned. During this period, it lost nearly 6% of its value.
As the crypto asset struggles near $1.34, it appears to have entered the “FUD zone,” which means that crowd sentiment around XRP has turned sharply negative again.
XRP Fear Hits Extreme Levels
Santiment found that the ratio of bullish to bearish commentary has fallen to just 1.1 positive comments for every 1 negative comment across social media.
According to the analytics platform, similar periods of fear and skepticism have historically acted as contrarian signals for XRP’s price. When traders become overly fearful, many weaker holders may already have sold their positions, reducing selling pressure and creating conditions for a potential rebound.
Santiment added that previous moves into what it described as the “FUD zone” were often followed by price stabilization or short-term bounces. At the same time, it noted that the opposite pattern tends to appear during periods of extreme hype and optimism.
When the positive-to-negative sentiment ratio moves deep into the “FOMO zone,” traders often become overly confident and aggressively buy due to fear of missing out, conditions that have historically appeared near local market tops.
Meanwhile, XRP is trading within a long-term parallel channel, as tracked by analyst Ali Martinez. According to Martinez, if the pattern remains intact, the mid-range near $0.73 could become a crucial accumulation zone during deeper pullbacks.
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Spot XRP ETFs Outperform
While the underlying asset continues to struggle, US-based spot XRP ETFs, on the other hand, continue to outperform their Bitcoin and Ethereum counterparts. Last week, spot XRP ETFs attracted $22.04 million in inflows. This pushed the May inflows to over $116 million.
During this same timeframe, Bitcoin funds recorded $1 billion in outflows, while Ethereum funds lost nearly $300 million.
