A market commentator and XRP community pundit has shared why XRP is currently witnessing its worst retail sentiment in six months.
For context, market analytical resource Santiment first called attention to the increasingly bearish sentiment XRP has faced in recent times. Specifically, Santiment found that XRP is currently seeing the same level of bearish sentiment it witnessed six months ago when President Donald Trump announced his tariffs.
Unrealistic XRP to $1000 Expectations
With the crowd growing extremely fearful, Zach Rector, an XRP community figure, recently came up to highlight some of the factors that may have triggered this level of bearish sentiment.
According to him, multiple new entrants to the XRP market entered the scene this year with high hopes, especially following XRP’s meteoric surge from last November. For context, XRP rallied from $0.5 in November 2024 to a peak of $3.4 in January 2025. This marked a remarkable 580% surge within three months.
XRP’s run, which made it the best-performing asset among the top crypto tokens, attracted several new investors who anticipated another meteoric rally. In addition, market veterans such as Raoul Pal became bullish on XRP, contributing to the influx of new investors awaiting another run.
Within this period, bullish sentiments dominated the scene, and several XRP community figures floated ambitious price targets such as $50, $100, and even $1,000. According to Rector, these new investors held onto these targets and had unrealistic expectations for XRP’s price movements.
Now that XRP has failed to meet these expectations, sentiment has quickly turned sour, leading to the current retail FUD that has dominated the market.
Poor Economic Conditions
In addition to this, Rector also called attention to poor economic conditions that have kept everyday investors on edge. Notably, such economic situations often push investors to seek a safe haven in alternative assets like XRP. However, with XRP also failing to provide a reliable safety net, increased bearish sentiments have emerged.
According to Rector, a combination of these factors has resulted in frustration for the average retail XRP trader. He noted that he hopes these traders will not sell off their XRP holdings in an attempt to vent their frustration. This is because he believes the arrival of institutional investors and ETFs is inevitable once the ongoing U.S. government shutdown ends.
Rector is one of the XRP community pundits who believe XRP ETFs will gain approval and lead to rapid price surges. In a previous commentary, he argued that following the government shutdown, XRP ETFs could emerge and XRP would be on its way to double digits.
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