Retail Dumps XRP In Panic As Setup Turns Explosive

XRP sentiment has officially collapsed into extreme fear territory, and historically, that’s when some of the biggest rallies begin.

According to social data shared by Santiment on January 22, XRP traders have turned deeply pessimistic following a sharp 19% drop from the January 5 highs. Retail sentiment has now reached levels typically seen near local bottoms, a signal that often precedes strong upside moves.

Santiment Data Shows Retail Capitulation

As the cryptocurrency and blockchain monitoring platform’s analysts explained:

“Historically, this high level of bearish commentary leads to rallies. Prices move opposite to retail expectations more often than not.”

Ali Martinez Flags Key XRP Price Levels

At the same time, renowned crypto trading specialist Ali Martinez has identified three critical price levels that could define XRP’s next major move. These include support at $1.78, resistance at $1.97, and major resistance at $2.

XRP is currently hovering above its key $1.78 support zone, a level that has acted as a demand floor in previous cycles. A sustained hold above this region could provide the foundation for a rebound toward the $2 resistance zone.

Its price at the time of publication stood at $1.93, indicating an advance of 1.9% on the day, a 6.8% dip across the past week, but an overall gain of 2.4% on its monthly chart, according to the most recent information.

XRP Sits At A Major Technical Inflection Point

Meanwhile, social sentiment indicators show XRP has entered an “Extreme Fear” regime, a zone that historically aligns with accumulation rather than distribution. Previous instances of similar fear spikes have often marked the early stages of powerful relief rallies.

From a contrarian perspective, the setup is textbook: retail is fearful, sentiment is washed out, and the price is sitting at a major technical inflection point. If support holds, XRP could be positioning for its next leg higher, catching late sellers off guard once again.

XRP Price Today

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