Social Sentiment Turns Bearish For XRP

XRP is currently experiencing a rare moment of tension. While institutional investors continue to inject capital into the asset through spot ETFs, social sentiment surrounding XRP has plunged sharply into extreme fear territory. This striking contrast between capital inflows and market panic is fueling uncertainty. At the crossroads of fragile technical signals and the possibility of a rebound, XRP has become one of the most closely watched assets in the cryptocurrency ecosystem.

A Degraded Technical Climate for XRP

Pressure on XRP intensified this week, with a weekly performance down by -7.4%, in the context of the ongoing downtrend observed since the beginning of the month.

The technical rebound attempt was aborted despite a notable spike in activity. XRP briefly crossed $2.05, reaching $2.07 on volume up 68% compared to the average. This movement, although promising in appearance, was fully retraced in the following hours, revealing a lack of bullish conviction in the market.

Here are the key elements of this technical deterioration:

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  Failure to break above $2.05: Despite a volume of $44.99 million, the bullish attempt was not followed through, and sellers quickly regained control.
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  An immediate resistance between $2.04 and $2.05: This zone is identified as a distribution level, where each rebound is actively sold.
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  Momentum declining across multiple timeframes: Technical oscillators confirm a persistent downtrend, with no signs of bullish divergence at this stage.
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  A fragile support zone at $2.030: Analysts emphasize the importance of this technical pivot, under threat of a move back to $2.020 – $2.025, or even the psychological level of $2.00.

The current dynamic shows a clear dominance of sellers in the short term. The technical context seems to indicate that, for now, the bulls neither have the strength nor the volume to reverse the trend.

Optimistic Signals Despite Extreme Fear

Despite this degraded technical climate, some underlying signals suggest a possible reversal. Social sentiment around XRP, measured by the Santiment platform, reached an extreme fear level comparable to lows observed in October.

Indeed, this is the highest level of bearish comments in over five weeks. Yet, these extreme levels have often been followed by short-term rebounds. That was the case on November 21, when a similar configuration preceded a notable bullish move. Moreover, a TD Sequential reversal signal appeared on the weekly chart, indicating a potential start of long-term stabilization.

At the same time, massive inflows into XRP ETFs in the United States testify to robust institutional momentum. $906 million of net inflows have been recorded since the product launches, with no days of outflows. On-chain data confirms this dichotomy. While XRP holders over a 6 to 12 month period reduce their exposure (from 26.18% to 21.65%), long positions held via ETFs continue to quietly increase.

The XRP price moves within a zone of high uncertainty. While technical signals suggest a possible rebound, sentiment is still dominated by fear. The fragile balance between recovery and continuation of the decline could quickly shift, depending on market reactions in the coming days.