Retail Sentiment on XRP Turns Negative — A Bullish Signal for Contrarians

XRP Retail Sentiment Turns Bearish — Historically a Bullish Signal

Retail traders are showing their most pessimistic stance toward XRP since the market panic surrounding Trump’s tariff announcement back in April — a setup that historically precedes price rebounds.

According to data from Santiment, XRP’s bullish-to-bearish commentary ratio fell below 1.0 twice over the past three days — hitting 0.74 on Oct. 4 and 0.86 on Oct. 6 — levels that have previously aligned with fear-driven sell-offs and local bottoms.

The platform noted that retail traders are expressing the highest levels of FUD (fear, uncertainty, and doubt) in six months. “When small traders turn overly bearish, markets tend to move in the opposite direction,” Santiment observed, implying that current sentiment could mark a contrarian buying opportunity.

The last time retail sentiment was this negative — during Trump’s tariff announcement — XRP soon entered a bottoming phase, later rising steadily even as retail commentary remained cautious.

Conversely, on Sept. 17, when bullish comments outnumbered bearish ones 3.21 to 1, XRP peaked above $3.14 before sliding lower, showing the danger of euphoric sentiment.

The broader takeaway is clear: retail emotions often invert reality. Extreme optimism tends to appear at market tops, while excessive fear often emerges at local bottoms.

If that pattern holds, XRP’s current wave of retail pessimism may serve less as a warning and more as a bullish tailwind, especially if demand continues to build near current price levels.

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