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XRP is showing renewed signs of investor anxiety on Tuesday after a turbulent week across the broader crypto market, with sentiment indicators flashing “extreme fear”, a condition that has historically preceded short-term recoveries.
Notably, over the past week, the asset declined by almost 3%, underperforming some market segments while still reflecting the broader risk-off mood in the crypto market.
However, despite the muted price movement, attention has shifted toward sentiment data, which is showing a more counter signal beneath the surface.
According to data from the popular analytics platform Santiment, XRP’s social sentiment has taken a sharp downturn, with bearish commentary now slightly outpacing bullish commentary. The platform noted that the ratio of positive to negative mentions has decreased to approximately 1for every 1 bearish comment.
In its analysis, Santiment emphasized that this level of crowd pessimism has historically acted as a potential reversal signal. Weaker market participants often exit positions amid heightened fear, reducing selling pressure and allowing recovery moves.
 
Additionally, the platform explained that previous dips into “FUD zones” have frequently coincided with price stabilization or short-term rallies. However, when sentiment becomes excessively bullish, markets often struggle as buying pressure fades.
Moreover, popular analyst Ali Martinez reported a significant drop in whale transactions on the XRP network over a short period.
According to him, large transactions exceeding $1 million decreased significantly from 157 to 67 within nine days, resulting in a sharp 57.3% decline. This reduction in whale activity suggests a slowdown in market activity.
The analyst noted that such declines often indicate a “compression phase,” in which major players temporarily reduce activity, allowing the price structure to consolidate. Under such conditions, liquidity tends to stabilize as order books rebuild, often preceding larger directional moves once participation returns.
Additionally, he pointed to XRP’s price structure, suggesting that if the asset continues to follow its current parallel channel, the mid-range near $0.73 could become a potential accumulation zone. This implies that, despite short-term weakness, broader structural levels remain in focus for traders positioning for longer-term moves.
Furthermore, analyst Celal Kucuker argued that XRP’s underlying strength is becoming increasingly difficult to ignore, especially if the broader crypto market transitions into a euphoric cycle. Under an extreme market growth projection, he suggested that XRP could potentially hit $17.
He further stated that such a scenario could even challenge Ethereum’s market position, an ambitious outlook that reflects growing polarization between short-term sentiment and long-term speculative predictions.
Meanwhile, as XRP remains range-bound, market participants are closely watching whether extreme fear will once again act as a contrarian signal or whether weakening momentum will extend the current consolidation phase further into the week.
At press time, XRP was trading at $1.31, reflecting a 0.95% drop in the past 24 hours.