- XRP surged back above $2.50 after dipping below $1.90, with Santiment noting that the rally followed intense retail pessimism.
- Sentiment data shows extreme negativity—the lowest since January—which historically signals short-term buying opportunities.
- Analysts suggest institutional investors may be accumulating as retail traders capitulate.
Cryptocurrency analytics platform Santiment has highlighted a sharp turnaround in XRP’s price and investor sentiment, noting that the token has rebounded above $2.50 after a brief dip below $1.90 just ten days ago.
Crowd Capitulation and FUD Mark the Bottom
According to Santiment’s post on X, XRP’s latest rally comes amid a period of heavy crowd pessimism and loss-driven selling. “Data shows clear signs of the crowd selling at a loss and conveying FUD,” Santiment wrote. “Prices typically move opposite to retail’s expectations.”
This inverse relationship between sentiment and price action, often described as a “contrarian indicator,” suggests that periods of extreme negativity among retail traders tend to coincide with local market bottoms.
👍 Just 10 days after XRP dropped below $1.90, and 3 days after retracing to $2.20, $XRP has crossed above $2.50. Data shows clear signs of the crowd selling at a loss and conveying FUD. Prices typically move opposite to retail’s expectations.
🔗 Link: https://t.co/r8dZjJlkX4 pic.twitter.com/b28l4pNAN9
— Santiment (@santimentfeed) October 20, 2025
Sentiment Data Points to a Historical Buy Zone
An accompanying chart from Santiment illustrates this dynamic vividly. It tracks the ratio of positive to negative XRP commentary across social channels over time, overlaid with the token’s price movement.
The visualization highlights a sharp decline in positive sentiment and a surge in negative discussion, reaching the lowest ratio of optimism since late January. Historically, such readings have preceded short-term price recoveries, which Santiment notes are “typically a buy signal.”
Source: Santiment/X
XRP Price Action: A Quick Reversal
XRP’s price has shown impressive resilience following its recent correction. After sliding under $1.90 and briefly consolidating near $2.20, the asset surged back above $2.50 within three days.
This rebound aligns with Santiment’s sentiment-based metrics, reinforcing the idea that market pessimism may have reached an exhaustion point, prompting opportunistic buying from traders anticipating a reversal.
Analysts point out that when retail traders capitulate, smart money and institutional participants often step in to accumulate. The current sentiment environment mirrors similar setups seen earlier in 2025, when low morale preceded substantial short-term rallies across the broader crypto market.
Conclusion
Santiment’s data once again highlights the psychological patterns driving crypto markets, where crowd fear and loss aversion often mark opportunity zones. With XRP back above $2.50 and social sentiment still deeply negative, traders are watching closely to see if history repeats and whether this latest rebound marks the start of a stronger upward leg.
Also Read: Traders Turn Cautious as Polymarket Bets Signal Limited Confidence in Bitcoin’s October Rally
