XRP: … A reversal signal in sight?
XRP sits at a strange tipping point. Large institutional investors continue pouring cash into spot ETFs. At the same time, social sentiment has collapsed into pure fear. This sharp difference between rising capital and market panic creates massive uncertainty. Caught between weak technical signals and the hope for a rebound, XRP is a major focus in the crypto space.
The latest numbers show real stress for XRP. Price dropped 7.4% over the past week. Santiment data shows sentiment hitting extreme fear levels. A technical attempt to move above $2.07 failed quickly. A TD Sequential signal suggests a big price bounce may be coming soon.
Downward pressure on XRP grew worse this week. The price trend has remained negative since December started. Bulls tried for a brief rebound, but sellers crushed it fast. XRP briefly touched $2.07 on higher than average volume. That strong surge completely reversed within hours. This confirms buyers currently lack the power to move the price higher.
Here is what defines the market weakness:
Sellers immediately killed the rally above $2.05. Resistance near $2.04 acts as a firm selling ceiling. Every small bounce is quickly sold down by traders. Downward momentum is increasing across several charts. Support rests dangerously near $2.030. If that low level breaks, a fall to the key $2.00 price is highly likely. Short-term markets are currently controlled by sellers.
Signs of Hope Despite Extreme Fear
Some underlying factors suggest a possible reversal may come. Social fear around XRP is now extreme, reaching levels last seen in October. Historically, such intense fear often causes quick price jumps. A similar sentiment low in November led to a significant upward rally. A major reversal sign also just flashed on the weekly price chart. This points to a potential start for long-term stability.
Meanwhile, US institutional money is flowing strongly into XRP ETFs. Those funds saw $906 million in net deposits since launch. They have not registered a single day of capital leaving the funds. This institutional demand is rock solid.
Data from the blockchain confirms this odd split. Holders who bought 6 to 12 months ago are slowly selling their holdings. However, institutional ETF holdings continue to grow every day.
XRP trades in a zone of huge risk and huge reward. Technical charts hint at a rebound. Market sentiment remains locked in fear. This delicate balance could break very fast. Watch how the market reacts over the coming days.