The sentiment surrounding XRP among retail investors has plummeted to extreme lows, as fear and uncertainty continue to grip the market. Following a sharp decline from its peak above $3 in 2025, the cryptocurrency has struggled to regain its footing, leading to rapid sell-offs and a weakened market structure. Despite the current uncertainty, recent reports suggest that XRP is now at sentiment levels that have historically preceded significant price surges. If past patterns hold true, XRP may be on the cusp of a long-awaited reversal.
Signs of Past Rallies Linked to Sentiment Levels
According to a recent post by market intelligence platform Santiment on April 13, XRP’s Fear, Uncertainty, and Doubt (FUD) has reached its third-highest level in the past two years. Retail investors are increasingly turning away from the cryptocurrency due to its prolonged downtrend and consolidation at lower price levels.
Further Reading
Interestingly, Santiment’s data indicates that the current negative sentiment surrounding XRP’s price outlook may actually be a positive indicator. The platform noted that historically, when bearish sentiments replace bullish sentiments, the likelihood of a relief rally significantly increases.
Santiment explains that prices often move contrary to the crowd’s expectations. The chart provided shows similar instances of bearish sentiment in February 2025 and October 2025, followed by sharp rebounds in XRP’s price.
With retail investors largely abandoning XRP after a significant price drop, Santiment suggests that this could be a signal for a potential bullish reversal in the near future if historical trends hold true.
XRP Sees Brief Rally Amid Market Movement
XRP has recently experienced a modest uptick, with a 3% increase in the last 24 hours and over 4% growth in the past week. However, the cryptocurrency has yet to break through the $1.4 resistance level.
Further Reading
CoinMarketCap data reveals that XRP’s price surge this week was largely driven by a broader crypto market rally led by Bitcoin. Positive signals from the Bank of Japan eased macro pressures on risk assets, contributing to Bitcoin’s price increase.
Despite these external factors, XRP lacks strong catalysts for further price growth. The cryptocurrency’s weak market structure, coupled with geopolitical tensions, have fueled negative sentiment and investor panic.
Featured image from Dall.E, chart from TradingView.com