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XRP Sentiment Plummets, But Analysts See Potential for Price Surge

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Here’s some good news: the sentiment around XRP is terrible. Contradictory? Not at all, according to market analysis firm Santiment, which notes that historically, such negative sentiment often precedes a significant price rally. Analysts are also hopeful about the future and see potential signals that the tide is about to turn. Read more below.

An image of XRP with a graph of the cryptocurrency’s price

Foto: Alexandru Nika / Shutterstock.com

Negative Sentiment Around XRP, Good News?
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The price of XRP has been under considerable pressure for some time. In the past two months, the price has fallen by about 30%, from around $3 to its current level of $2.05. Investors are understandably in a pessimistic mood.

According to Santiment, sentiment on social media surrounding XRP has dropped to a relative low point. However, the market analysis firm suggests this could actually be a positive signal.

The last time market sentiment was this poor was on November 21. Immediately following that, a three-day price rally ensued with a 22% increase, Santiment explains.

After that, the sentiment turned positive, but the price rally came to an end. Social media sentiment thus appears to be a contra-indicator for the price. The current negative sentiment, therefore, suggests that a new price increase may follow, according to Santiment:

“At the moment, an opportunity seems to be presenting itself similar to two weeks ago.”

XRP Price Analysis
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Analysts see hopeful signals in the price chart. According to some, the dip is over and the price is on the verge of an upswing, with price targets mentioned between $6.50 and $8.

Many analysts point to the similarities with the price movements in 2017. Back then, the XRP price fell for several months after an initial rise, after which the real price explosion occurred. Analyst ChartNerd sees possible early signs that this pattern could repeat itself.

Fundamental Developments
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Predicting the future, however, remains a form of tea-leaf reading. Nevertheless, various fundamental developments are happening in the background that offer more solid ground, such as new partnerships between Ripple, the company behind XRP, and various financial service providers. Ripple is also working hard to encourage the adoption of RLUSD, a stablecoin pegged to XRP.

In the long term, such developments are likely more important for the price than the chart, says Black Swan Capitalist.