Ripple (XRP) has experienced a price decline over the past month. While the cryptocurrency briefly surpassed $1.50 on a few occasions, these gains were short-lived, as selling pressure quickly reemerged. During this period, XRP lost nearly 6% of its value.
Sentiment Shifts to Negative
As the crypto asset struggles near $1.34, it appears to have entered a “FUD zone,” indicating a sharp shift towards negative sentiment surrounding XRP.
Santiment data reveals that the ratio of bullish to bearish commentary has fallen to just 1.1 positive comments for every negative comment across social media platforms.
Historically, according to the analytics platform, similar periods of fear and skepticism have served as contrarian indicators for XRP’s price. When traders become overly fearful, weaker holders may sell their positions, reducing selling pressure and potentially setting the stage for a rebound.
Santiment noted that previous entries into the “FUD zone” were often followed by price stabilization or short-term gains. Conversely, the opposite pattern tends to occur during periods of extreme hype and optimism.
When the positive-to-negative sentiment ratio moves into the “FOMO zone,” traders often become overly confident and aggressively buy due to fear of missing out, a condition that has historically appeared near local market peaks.
Technical Analysis and ETF Performance
Meanwhile, XRP is trading within a long-term parallel channel, according to analyst Ali Martinez. Martinez suggests that if the pattern holds, the mid-range near $0.73 could become a crucial accumulation zone during deeper pullbacks.
Despite the underlying asset’s struggles, US-based spot XRP ETFs continue to outperform their Bitcoin and Ethereum counterparts. Last week, spot XRP ETFs attracted $22.04 million in inflows, bringing May’s total inflows to over $116 million.
During the same period, Bitcoin funds recorded $1 billion in outflows, while Ethereum funds lost nearly $300 million.
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