Buying XRP Now Could Be A Good Idea As Negative Sentiment Jumps To 6-Month High
XRP’s value motion has underperformed most high cryptocurrencies which have rallied alongside Bitcoin up to now 48 hours. This consolidation comes after a failed try to interrupt via resistance close to $3.10, which has seen the token slip back down below $3.
However, current on-chain knowledge from analytics platform Santiment exhibits that regardless of XRP’s slower tempo, one thing vital is brewing beneath the floor, and it may signal a buying opportunity.
Growing Negative Sentiment Around XRP
According to Santiment’s newest market knowledge, XRP is presently experiencing its highest level of retail concern, uncertainty, and doubt (FUD) within the final six months. The final time the altcoin skilled this high stage of retail concern was when Trump’s tariff bulletins unsettled markets earlier this yr.
Data from Santiment shows that bearish commentary in regards to the token on social media has considerably outweighed bullish sentiment over the previous three days. Particularly, unfavorable sentiment has dominated two out of the final three days. The ratio of bullish to bearish mentions dropped to 0.86 on October 6 and 0.74 on October 4.
Such moments of extreme pessimism amongst retail merchants have at all times coincided with native value bottoms for the token. The identical sentiment imbalance that got here earlier than reversals up to now is reappearing and the present concern may as soon as once more be a precursor to restoration within the coming days.
The chart knowledge under, which was shared by Santiment on the social media platform X, exhibits XRP’s bullish-to-bearish ratio reached 3.21 on September 17, and this was a dependable high sign that was adopted by a value correction. On the opposite hand, the newest readings from October reveal an reverse setup, one where fear is dominating.
Is Buying The Altcoin A Good Idea?
Based on the newest on-chain knowledge, Santiment believes that now may very well be probably the most favorable moments to purchase XRP. The crowd’s tendency to promote or specific skepticism throughout these emotional lows provides alternative for good merchants to build up at decrease costs before the next uptrend.
Santiment’s touch upon X famous that crypto costs have a tendency to maneuver reverse to retail expectations, with related FUD being an excellent signal of a possible breakout. This signifies that the present surge in bearish chatter may truly level to an upcoming rally, particularly if a Spot XRP ETF is launched in October.
Despite its value struggles and losing both $3 and $2.9 up to now 48 hours, the altcoin has managed to carry above $2.8, which has confirmed to be probably the most vital helps since August, alongside $2.72. Therefore, XRP’s potential to carry above its short-term help round $2.80 regardless of mounting unfavorable sentiment reinforces the concept that draw back stress may quickly exhaust itself and pave the best way for a bounce to retest $3.10.
At the time of writing, XRP is buying and selling at $2.87, down by 3.3% in a 24-hour timeframe.