XRP (CRYPTO: XRP) has fallen about 35% over the past three months and roughly 63% over the past nine months, as sentiment in the market turns increasingly negative.
Despite the decline, analysts say extreme fear conditions could set the stage for a short-term relief rally.
Sentiment Turns Deeply Bearish
Data from Santiment shows XRP sentiment has reached one of its most bearish readings in the past two years, ranking among the highest levels of fear, uncertainty and doubt (FUD).
Historically, such extreme pessimism has often preceded temporary price rebounds, as markets tend to move counter to crowd expectations.
The data suggests retail investors have largely exited positions, which some analysts interpret as a potential contrarian bullish signal.
Technical Outlook Remains Weak
According to analyst ChartNerd, XRP continues to follow a long-term cycle pattern anchored to a multi-year ascending support trend line dating back to 2013. He said the asset appears to be in a corrective phase within a broader bearish structure after completing a recent rally.
ChartNerd noted that XRP must reclaim a key resistance zone, referred to as the “golden ratio pocket,” between $2.14 and $2.40 to shift momentum. Until then, he expects continued volatility and lower highs.
He also outlined potential downside scenarios, with support levels near $1.12, and in a more bearish case, between $0.70 and $0.80.
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