XRP sentiment hits 8-month low, a historical buy signal

XRP social sentiment has fallen to an eight-month low, a level that has historically served as a contrarian buy signal for short-term traders.

According to onchain analytics firm Santiment, the weighted sentiment metric for XRP dropped to minus 0.908 on Thursday, the lowest reading this year. The metric combines the ratio of positive to negative social media posts with overall commentary volume. XRP traded at $1.14 on Friday, up 2.3% on the day, but remains sharply below its January highs above $2.40 and roughly 69% below its July peak. The decline in sentiment reflects trader fatigue after months of price stagnation, Santiment noted.

For cryptocurrency traders, extreme bearish sentiment has often preceded short-term price reversals. When social chatter turns overwhelmingly negative, it can indicate that selling pressure has been exhausted and that the market is ripe for a bounce. Live crypto prices and charts on NowPrice show how XRP is reacting to this sentiment shift, with the token attempting to recover from recent lows. The weighted sentiment metric has historically flagged similar bottoms in XRP, making it a tool for contrarian traders.

Looking ahead, traders will watch whether XRP can sustain its current bounce and break above key resistance levels. A move above $1.30 would signal strengthening momentum, while a drop below $1.00 could invalidate the bullish signal. The broader crypto market's direction, particularly Bitcoin's price action, will also influence XRP's trajectory. Santiment's data suggests that if history repeats, the current sentiment low could mark a near-term bottom.