The post Should XRP Retail Turn Greedy When the Crowd Is Fearful? appeared on BitcoinEthereumNews.com.

XRP’s price has dropped below $2, representing a roughly 19% decline from its January 5, 2026, peak. This pullback has unsettled many investors. However, analysts still see several constructive signals that could support a recovery. This article examines the key factors behind that view. The analysis draws on social data, trading activity, and recent developments from exchanges. Sponsored Sponsored Retail Sentiment Turns Bearish Amid Price Correction XRP has experienced a sharp reversal in sentiment. Positive/Negative Sentiment data from Santiment—a market sentiment analytics platform based on social media discussions—shows that XRP has fallen into the “Extreme Fear” zone. Just one week earlier, the same metric still reflected greed. Santiment notes that, historically, sentiment extremes often mark potential reversal points. Markets tend to move against consensus expectations. XRP Ratio of Positive/Negative Sentiment. Source: Santiment “Historically, this high level of bearish commentary leads to rallies. Prices move the opposite to retails’ expectations more often than not,” Santiment reported. While this observation suggests a constructive scenario, the rapid sentiment swing over a short period highlights uncertainty and inconsistency among retail traders. Such instability typically does not support a sustained uptrend. Sponsored Sponsored Negative Funding Rates Signal a Potential Reversal Pattern Market data points to another possible reversal signal. An analyst at CryptoQuant has identified negative funding rates in perpetual futures contracts, indicating an excessive buildup of short positions. Funding rates represent periodic payments between long and short holders in perpetual futures markets. Negative rates mean that short sellers are paying long positions. Historically, similar conditions have often preceded XRP price recoveries. XRP Funding Rate. Source: CryptoQuant. CryptoQuant data shows that this pattern has appeared twice since 2024—during August–September 2024 and April 2025. In both cases, negative funding rates preceded notable price rebounds. “Historically, the market tends to move against a late consensus. The accumulation…

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Filed under: News - @ January 22, 2026 6:28 am