Social media sentiment around XRP has shifted sharply toward fear following recent price declines, according to data from analytics firm Santiment. The platform's Positive/Negative Sentiment ratio has fallen to 1.01, indicating bearish comments nearly match bullish posts across major social platforms. Historical patterns suggest such fear-driven sentiment often precedes price recoveries rather than continued declines.
What Happened: Sentiment Metric Drops
Santiment's tracking shows XRP sentiment entered what the firm calls a "fear zone" after peaking earlier this month when the ratio spiked into a "greed zone" above 1.
The metric works by analyzing social media posts through machine learning models that classify comments as positive or negative, then calculates the ratio between them.
When the indicator exceeds 1, bullish sentiment dominates. Values below 1 signal bearish attitudes prevail.
The recent greed-level reading preceded a price drop, consistent with contrarian patterns observed across cryptocurrency markets where assets often move against crowd expectations.
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Why It Matters: Contrarian Signal
Santiment argues the current sentiment level creates conditions historically associated with upward price movement.
"When retail has doubts about a coin's ability to rise, the rise becomes significantly more likely," the analytics firm stated in its analysis.
The pattern reflects a recurring dynamic in digital asset markets where peak optimism often marks local tops, while widespread pessimism can signal bottoms. At $1.85, XRP has declined 2.2% over 24 hours as of publication.
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