Extreme fear among XRP traders, indicated by a sharp drop in positive social sentiment, has historically preceded price rebounds according to data. Meanwhile, the asset’s price struggles near $1.34, having lost value over the past month. Despite this, U.S. spot XRP exchange-traded funds have seen significant inflows, outperforming similar Bitcoin and Ethereum funds which experienced substantial outflows.
The price of Ripple (XRP) has declined nearly 6% over the past month, struggling near $1.34 after brief rallies above $1.50 faded. Social sentiment around the asset has turned sharply negative, entering what analysts describe as the “FUD zone.”
Santiment found the ratio of bullish to bearish commentary has fallen to just 1.1 positive comments for every negative one. “Similar periods of fear and skepticism have historically acted as contrarian signals for XRP’s price,” the analytics platform stated.
The data suggests weaker holders may have already sold, reducing downward pressure. Conversely, periods of extreme hype and optimism have often appeared near local market tops.
Analyst Ali Martinez noted XRP is trading within a long-term parallel channel. According to his analysis, the mid-range near $0.73 could become a crucial accumulation zone during deeper pullbacks if the pattern holds.
In a contrasting trend, U.S. spot XRP ETFs attracted $22 million in inflows last week. This pushed total May inflows for these funds to over $116 million.
During the same period, spot Bitcoin funds recorded approximately $1 billion in outflows. Ethereum spot funds also saw significant outflows of nearly $300 million.
