XRP fell towards the $2 mark in the early US hours on Friday as social sentiment around the token soured sharply, with new data from research firm Santiment showing the deepest stretch of bearish commentary since October.
The reversal in crowd sentiment comes after a two-month decline of around 31%, leaving the token vulnerable to further downside if risk appetite weakens across majors.
Santiment’s sentiment model, which tracks flows of positive and negative social messages against price, shows XRP entering what the firm terms a fear zone, a level where negative commentary significantly outweighs bullish talk.
Similar readings earlier this year have been in line with periods of capitulation by short-term holders, although not all cases have marked lasting bottoms.
The firm noted a parallel with Nov. 21, when a comparable surge in negative messages preceded a brief rebound of about 22% over the following three days before momentum petered out. It suggested traders monitor whether sentiment stabilizes or continues to deteriorate, a shift that often shapes positioning in retail-heavy markets.
XRP has outperformed some smaller tokens, but remains sensitive to rapid deleveraging and the unwinding of carry trades linked to US data releases and shifts in global risk appetite.
