XRP Faces Intense Fear and Uncertainty
XRP sentiment has plunged to its lowest levels since October, entering the fear zone. Intelligence platform Santiment suggests this could precede a price rally, as social data indicates the token is facing intense fear, uncertainty, and doubt.
Santiment reported Thursday that XRP is experiencing the most negative sentiment since October. The last time fear reached similar levels was November 21, when the token's price rallied 22% over three days. The platform indicated that an opportunity may be emerging, similar to the situation two weeks ago.
Market Performance and Analyst Perspectives
XRP dropped 4.6% over 24 hours to below $2.10, making it the worst performer among the top 10 cryptocurrencies by market value. The token currently sits 42% below its July 2025 all-time high.
Justin d'Anethan, head of research at Arctic Digital, stated that traders perceive prices to be stuck in a low-conviction zone near $2. This capitulation zone often marks bottoms that can benefit from legal wins, regulatory clarity, and demonstrated cross-border payment value.
Nick Ruck, director at LVRG Research, noted that XRP is holding firmly above its key $2 level. Growing bullish momentum stems from sustained institutional inflows exceeding $750 million into spot ETFs this month.
Spot ETF Inflows and Investor Interest
Net inflows to spot XRP exchange-traded funds slowed considerably this week, despite positive trading starts. Thursday's inflows reached $12.8 million, the lowest since November 21, according to SoSoValue. The products have maintained positive flows since their mid-November launch.
Five funds currently hold a total of $881 million in net assets, demonstrating continued investor interest despite the slowing momentum.
Historical Patterns Suggest Buying Opportunity
Crypto analysts have agreed with Santiment's assessment that the recent drop does not signal bearish fundamentals. Historical patterns suggest that extreme fear zones often create buying opportunities for XRP as sentiment reaches oversold conditions and positions for reversals.