Ripple’s native token, XRP, is facing a wave of negative sentiment as social media discussions turn increasingly bearish. Data from analytics firm Santiment indicates that the token has entered a “fear zone,” a development that follows a two-month price slide of approximately 31%.

According to Santiment’s analysis, which tracks the ratio of positive to negative comments about XRP online, bearish chatter now significantly outweighs bullish sentiment. This marks a clear shift from the more balanced views observed earlier in the year. The firm’s metrics suggest that crowd psychology has become overwhelmingly pessimistic.

Santiment Data Suggests Potential for a Reversal

While widespread fear can signal further price declines, Santiment’s model also identifies these periods as potential turning points. The platform highlights moments of extreme pessimism as “fear zones,” which often precede price bottoms as weaker hands capitulate. Conversely, periods of overwhelming optimism are labeled “greed zones,” which can indicate a local top.

Analysts at the firm pointed to a recent historical precedent from late November. At that time, crowd fear reached a similar level, and XRP’s price subsequently rallied 22% over the following three days before greed took over and halted the momentum. The current sentiment readings suggest a similar opportunity could be developing, where extreme pessimism might fuel a sharp price recovery.

Broader Market Drift Pressures Major Altcoins

XRP’s recent performance is also unfolding within a cautious broader market. The token was recently trading around $2.09, down about 4.5% on the day and extending its monthly losses. The total cryptocurrency market capitalization also slipped to $3.22 trillion, reflecting a pullback that has affected major altcoins.

Although XRP has shown more stability than some smaller tokens, it’s not immune to market-wide pressures like thinning order books and cautious trader positioning. This sentiment is amplified by uncertainty surrounding upcoming U.S. policy decisions and recent position cuts by leveraged traders.

Ripple Advances Institutional Strategy

Away from the short-term market charts, Ripple continues to build its institutional infrastructure. Some analysts believe XRP could still target the $2.50 to $2.75 range if momentum builds and cross-border liquidity improves. Supporting this long-term outlook, Ripple recently announced an expansion of its U.S. operations with the launch of digital asset spot prime brokerage services.

This initiative follows the company’s acquisition of the multi-asset prime brokerage firm Hidden Road. The acquisition has been integrated into Ripple Prime, creating a unified trading and custody platform designed to serve professional and institutional clients.

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