XRP did not follow the crowd as usual, as it quickly rebounded from recent price lows despite increasing negative sentiments and FUD.
Santiment highlighted that the morale of retail traders grew low on XRP, evident in the strong negative sentiments around the asset. The market intelligence firm noted that XRP recorded its lowest ratio of positive to negative comments since late January during the famous October 10 market crash.
Crowd Selling and XRP FUD Escalated
Notably, Santiment further identified that the 9-month sentiment low sparked crowd XRP selling and widespread fear, uncertainty, and doubt (FUD). Many sold XRP at a loss during the crash, with predominant market sentiments suggesting further downsides were likely.
But what did XRP do? It rebounded instead. Santiment noted that such negativity was a buy signal, as prices usually go the opposite way to retail expectations.
The analysis proved true, with XRP bouncing from the lows of $1.327 on October 10 to reclaim $2.5 on Monday. Notably, XRP also recovered from the drop to $2.20 on October 17, showing bullish momentum while crowd sentiment suggested otherwise.
This contrarian play, as Santiment regularly highlights, aligns with the popular quote from Baron Rothschild, who advised to “buy when there is blood in the streets.” XRP has historically rebounded when the crowd is overly bearish, and this time would be no different.
XRP Whales on the Sideline
While retailers are panicking, whales have remained unperturbed. Additional Santiment data, brought forward by Ali Martinez, shows that large XRP holders have stayed on the sidelines as prices consolidate.
They have not panicked and sold like retailers or bought into the fear in the past two weeks. The inactivity suggests caution among whales, who appear keen on first observing the market development before any action.
Meanwhile, XRP is trading at $2.42 at press time, down 2.82% since today, having lost the $2.55 level attained yesterday. Nonetheless, the token has rebounded 76% from the October 10 low and 10.5% from the Friday floor price.
More Near-Term XRP Highs
Despite the unclear price actions, analysts have remained resolute on higher prices for XRP in the near term. For context, Whale.Guru predicted that XRP would reach a new all-time high of $5 before the end of this year. He expects XRP to follow Bitcoin’s lead, asserting that it would rally to $250,000.
Ash Crypto sees XRP higher at $8 by the end of the year but still has a lower range of $5. He also based his prediction on the possibility of a Bitcoin rebound to between $150,000 and $200,000.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.