XRP Falls 10% In A Week As ‘Extreme Fear’ Sentiment Signals Possible Rebound

XRP (CRYPTO: XRP) has declined about 10% over the past seven days, pushing market sentiment into “Extreme Fear” and possibly setting up a short-term bounce.

Trader Notes: Crypto chart analyst Ali Martinez identified key technical levels for XRP, with support at $1.78, resistance at $1.97, and a major resistance level at $2.00.

Elliott Waves Hub warned that XRP may be forming a multi-year flat correction pattern.

If the structure plays out, the analysis suggests a potential drawdown of up to 80% from current levels, with an ideal downside target near $0.12 and an invalidation level at $3.66.

A sustained move above the invalidation level would negate this bearish outlook.

Statistics: Santiment data shows XRP sentiment has plunged into Extreme Fear as retail traders turn increasingly bearish following a roughly 19% decline since Jan. 5.

Historically, similar sentiment extremes have often coincided with market bottoms, as price action tends to move against prevailing retail expectations.

Despite the negative sentiment, spot XRP ETFs recorded net inflows of $7.16 million on Jan. 21, suggesting continued institutional interest.

Community News: Ripple announced that its U.S. dollar-backed stablecoin, RLUSD, has been officially listed on Binance.

The stablecoin is currently supported on Ethereum, with integration on the XRP Ledger (XRPL) expected soon.

Trading pairs including XRP/RLUSD and RLUSD/USDT were made available at launch.

Ripple said the listing represents a key step toward expanding real-world payments, improving on-chain liquidity, and enabling cross-network interoperability at scale.

RLUSD has surpassed a $1.3 billion valuation and continues to grow, supported by rising adoption across payments and DeFi use cases.

DXC Technology has entered into a strategic partnership with Ripple to help banks seamlessly deploy enterprise-scale digital asset custody and payment solutions.

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