What Retail Traders Expect in the Short-Term

• XRP broke above a Fibonacci resistance on Saturday.

• Retail traders have mixed expectations for XRP.

• Analysts suspect the return of bullish sentiment for XRP.

XRP surged 4% on Saturday in a notable rally, breaking above the Fibonacci resistance at  $2.60. In the meantime, data from Santiment, a platform for researching crypto data, reveals retail FUD across social media, with most retail traders expecting a pullback for another buy opportunity.

What Retail Traders Think About XRP

Saniment’s latest report suggests a divergence from the massive bullish sentiment toward XRP over the past few months to a more subjective approach by retail traders. According to information shared on the platform’s official X account, the recently observed FUD indicated that small wallets are selling off their XRP tokens.

Related: XRP Sees $25K Buy From James Wynn and Prime-Broker Launch in the Same Week

In the meantime, the latest trend for XRP reveals that many crypto users are concerned about the cryptocurrency’s performance within the $2 – $3 range. Following a potential breakout logic, Santiment noted that high crowd predictions suggested a buy signal should XRP drop below $2 and a sell signal if the cryptocurrency climbs above $3.

Studying Santiment’s social analysis for XRP in October reveals a trend where most users anticipated the price to climb above $3 earlier in the month. However, the October 10 crypto market crash triggered significant FUD, which led most users to expect a drop below $2. 

Is XRP Regaining Its Bullish Momentum?

In the meantime, XRP’s range-bound behavior has caused a reduction in users’ price drop expectations, even though the prevailing sentiment still tilts towards a drop that could trigger a buy signal.

Related: XRP Price Prediction: Ripple Prime Power Play Fuels $2.90 Breakout Hopes

According to TradingView’s data, XRP traded for $2.65 at the time of writing, having surged nearly 15% in the past five days. The cryptocurrency’s daily chart reflects a notable rally, with daily volumes suggesting a return of bullish momentum, aligning with the digital asset’s long-term sentiment.

Despite the short-term expectations of retail traders, the broader XRP sentiment remains bullish. Technical analysts believe a return to the previous sideways channel between $2.7 and $3.2 would confirm a bullish outlook and form the basis for an expected rally to higher levels.