Sentiment around XRP falls into fear zone, but analysts see a potential reversal signal
Social sentiment around XRP has sharply deteriorated, falling into the “fear zone” — its lowest level since October. According to Santiment, similar periods of sharp sentiment drops have previously triggered local rallies. The platform noted that on November 21, a comparable spike in fear preceded a 22% XRP surge in just three days.
XRP fell 4.6% over the past 24 hours, dropping below $2.10 and becoming the weakest performer among the top 10 cryptocurrencies by market cap. The token remains about 42% below its July 2025 peak. The sentiment decline may signal not further downside but the formation of a potential entry point for buyers.
XRP near $2 resembles the setup seen two weeks ago. The price has entered a zone marked by low trader confidence, creating conditions for a possible short-term reversal. XRP is trading near levels associated with capitulation.
Institutional flows are also lending support. Despite the bearish environment, XRP continues to hold above the key $2 threshold. Analysts note that spot XRP ETFs have attracted more than $750 million over the past month, adding steady bullish pressure.
Still, inflows are beginning to slow. The latest data shows Thursday brought in just $12.8 million — the lowest figure in two weeks. Investors are turning more cautious after the strong mid-November ETF debut. Even so, net flows remain positive, with combined assets across the five XRP ETFs now totaling $881 million.
Such slowdowns are not necessarily negative; historically, they have often coincided with the formation of local bottoms that later acted as bases for upward moves. XRP may also benefit from mounting legal clarity and its established role in cross-border payments.
With social sentiment in fear territory, price resilience above $2, and ETF flows still positive, conditions may be forming for a recovery attempt. XRP remains under pressure, but market observers note that similar setups in the past have often preceded short-term reversals.
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