XRP Retail Sentiment Shifts From Greed to Extreme Fear — A Bullish Signal?

XRP’s value has dropped beneath $2, representing a roughly 19% decline from its January 5, 2026, peak. This pullback has unsettled many traders. However, analysts nonetheless see a number of constructive indicators that might assist a restoration.

This article examines the important thing components behind that view. The evaluation attracts on social information, buying and selling exercise, and up to date developments from exchanges.

Retail Sentiment Turns Bearish Amid Price Correction

XRP has skilled a pointy reversal in sentiment.

Positive/Negative Sentiment information from Santiment—a market sentiment analytics platform primarily based on social media discussions—reveals that XRP has fallen into the “Extreme Fear” zone. Just one week earlier, the identical metric nonetheless mirrored greed.

Santiment notes that, traditionally, sentiment extremes typically mark potential reversal factors. Markets have a tendency to transfer in opposition to consensus expectations.

“Historically, this high stage of bearish commentary leads to rallies. Prices transfer the alternative to retails’ expectations as a rule,” Santiment reported.

While this statement suggests a constructive situation, the fast sentiment swing over a brief interval highlights uncertainty and inconsistency amongst retail merchants. Such instability usually doesn’t assist a sustained uptrend.

Negative Funding Rates Signal a Potential Reversal Pattern

Market information factors to one other attainable reversal sign. An analyst at CryptoQuant has recognized detrimental funding charges in perpetual futures contracts, indicating an extreme buildup of quick positions.

Funding charges characterize periodic funds between lengthy and quick holders in perpetual futures markets. Negative charges imply that quick sellers are paying lengthy positions. Historically, comparable circumstances have typically preceded XRP value recoveries.

CryptoQuant information reveals that this sample has appeared twice since 2024—throughout August–September 2024 and April 2025. In each instances, detrimental funding charges preceded notable value rebounds.

“Historically, the market tends to transfer in opposition to a late consensus. The accumulation of shorts creates short-term promoting stress, however it additionally builds latent shopping for stress. If costs start to rise, these positions may very well be liquidated, fueling the upward transfer,” CryptoQuant analyst Darkfost explained.

Binance Lists XRP/RLUSD Trading Pairs, Boosting Volume

A constructive growth within the trade house can also be strengthening XRP’s outlook. On January 21, 2026, Binance announced the itemizing of a brand new XRP/RLUSD buying and selling pair.

Ripple CEO Brad Garlinghouse expressed optimism concerning the transfer. Trading RLUSD on Binance exposes the stablecoin to a broader user base. This growth reinforces the XRP Ledger ecosystem and may not directly assist XRP’s value.

The itemizing additionally opens a further liquidity channel for each XRP and RLUSD. Over the long run, below favorable market circumstances, deeper liquidity can enhance market depth, scale back value volatility, and appeal to new capital inflows.

BeInCrypto’s technical evaluation additional highlights a bullish divergence as XRP fell below $2. This sign provides to the short-term restoration outlook.

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