Market sentiment often shifts like the tides—subtle at first, then sudden and forceful. For XRP, that shift has arrived: retail fear is at its highest level in six months. According to blockchain analytics firm Santiment, this surge in bearish sentiment mirrors the market turbulence caused by President Trump’s tariff announcements earlier this year.
While such fear typically signals caution, it may also present a contrarian opportunity for investors.
XRP is seeing it's highest level of retail FUD since Trump's tariffs were announced 6 months ago. There have been more bearish comments than bullish for 2 of the past 3 days, which is generally a promising buy signal. Markets move opposite to small trader expectations. pic.twitter.com/flO7jjlo9m
— Santiment (@santimentfeed) October 7, 2025
Retail Sentiment Turns Bearish
Santiment’s data reveals that for two of the past three days, bearish comments about XRP have outnumbered bullish ones. Specifically, the bullish-to-bearish sentiment ratio fell to 0.74 on October 4 and slightly improved to 0.86 on October 6.
These figures indicate a significant increase in negative sentiment among retail traders, a pattern reminiscent of the market’s reaction to the tariff news in April.
Historical Precedents
Historically, such spikes in retail fear have often preceded price recoveries. In April, following the tariff announcements, XRP’s price initially dropped over 20% but later rebounded by more than 125%. Santiment notes that markets frequently move counter to small trader expectations, suggesting that the current wave of bearish sentiment could be a bullish signal.
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Whale Activity and On-Chain Data
Despite the surge in retail fear, on-chain data presents a more nuanced picture. Whale addresses, that is, wallets holding large amounts of XRP have been accumulating tokens during this period of consolidation. This accumulation suggests that larger investors may view the current market conditions as an opportunity, in contrast to the heightened fear among retail traders.
Technical Outlook
From a technical perspective, XRP is testing key support levels. The price has been consolidating around the $2.90–$3.00 range, with the next significant resistance near $3.17. If XRP can maintain support above $2.72, analysts suggest that a breakout could lead to a move toward $4.00 or higher.
In conclusion, the current surge in retail fear surrounding XRP, as highlighted by Santiment, may be more than just a warning sign—it could be an opportunity. While caution is always prudent, the historical tendency for markets to move against prevailing sentiment suggests that this may be a contrarian buy signal.
Investors should monitor key technical levels and on-chain data to assess whether a potential rebound is on the horizon.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.