- XRP sentiment hits extreme fear as retail traders turn bearish, according to Santiment.
- RSI and MACD show XRP selling pressure easing, signaling potential momentum stabilization.
- XRP faces $1.50 support if selling continues, but a reclaim of $2.10–$2.20 could open a run toward $4–$5.
Social data shows XRP sentiment has dropped into extreme fear territory. According to Santiment, negative commentary surged after XRP fell roughly 19% from its January 5 high.
Small retail traders turned openly pessimistic as price slid, pushing sentiment to levels that historically do not persist for long. Interestingly, past cycles show this setup clearly.
When retail commentary becomes heavily bearish, price tends to move in the opposite direction, and fear often indicates exhaustion.
XRP Price Analysis: What the Weekly Chart Says
XRP trades near the $1.95 area after a steady decline from above $2.40 earlier in January. The chart shows price compressing inside a descending structure.
RSI has stabilized around 40 after a decline toward the oversold zone, suggesting selling pressure is easing, and momentum may be starting to stabilize. The MACD also denotes this with declining red histogram bars and narrowing of the MACD line towards the signal line.
If selling resumes, the next support sits near $1.50. Some other major support levels are below the $1 price tag, at $0.65 and $0.45, respectively.
However, if sentiment reverses and price reclaims the $2.10-$2.20 zone, XRP could push beyond the $3.80-$4.00 region, followed by a longer-term upside extension toward the $5 level under a strong market cycle.
ETF Inflows Positive
As per the data provided by SoSoValue, XRP exchange-traded funds (ETFs) saw $7.16 million in inflows on Wednesday. The cumulative total net inflow now stands at $1.23 billion.
Interestingly, yesterday’s inflows were led by Bitwise’s XRP ETF, which raked in $5.26 million. On the other hand, Canary Capital’s XRPC saw $833K in inflows while Franklin Templeton’s XRPZ saw $1.06 million.
XRP enters a critical zone as extreme bearish sentiment meets easing momentum. Historically, such fear among retail traders often signals exhaustion, and with RSI and MACD stabilizing, downside risk may be limited for now.
Related: XRP Monthly Candle Turns Bearish as Bulls Defend $1.90
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Source: https://coinedition.com/xrp-extreme-fear-signals-potential-exhaustion-after-19-drop/