XRP Just Saw Worst Market FUD Levels in Half Year

Ironically, the market may be receiving its most bullish signal in weeks, as XRP is currently seeing its highest levels of retail fear, uncertainty and doubt (FUD) in more than six months. According to Santiment sentiment data, the proportion of bullish-to-bearish commentary about XRP has drastically decreased, with two of the last three days seeing more bearish mentions than bullish ones. This degree of pessimism from the general public has historically served as a trustworthy buy signal for the asset.

Historical pattern

A clear pattern emerges from the data: XRP usually recovers quickly after sentiment becomes overly negative. The bullish-to-bearish ratio fell to 0.74 on Oct. 4 and then steadily recovered to 0.86 on Oct. 6. These readings indicate crowd fear, which Santiment defines as advantageous entry zones. Six months ago, at the introduction of new U.S. tariffs, XRP last experienced a sentiment imbalance of this kind. Conversations about tariffs also came before a significant market recovery.

Technically, XRP is consolidating around $3, where it has been testing the descending triangle pattern’s resistance trendline. In spite of short-term volatility, the asset is still holding steady above its 200-day moving average. The RSI stays neutral, indicating that if buyers pick up steam again, there may still be upside potential.

Money beats sentiment?

Historically, markets tend to move against the sentiment of retail traders; smart money frequently intervenes when small investors exhibit excessive bearishness or panic. A market that may be shaking out weak hands before a possible breakout is reflected in the rise in negative commentary on social media, which is consistent with earlier periods that preceded price recoveries.

The current wave of pessimism was once again a prelude to accumulation rather than decline. If XRP can hold above the $2.90-$3.00 range, a breakout above $3.10-$3.20 could cause a shift in momentum.