Could XRP Bounce Back After Sentiment Hits Two-Month Low?

• Santiment reports XRP negativity at lowest level in over two months, signaling potential rebound.

• Historical data shows extreme negative sentiment often precedes a strong price rise for XRP.

Market​‍​‌‍​‍‌​‍​‌‍​‍‌ intelligence firm Santiment has indicated that the negativity related to XRP has gone down to its lowest level in more than two months. The analytics platform observed that conversations on social media about the cryptocurrency have gone down to what traders refer to as the “fear zone” level. Based on the firm’s data, the history of these patterns shows that this kind of extreme negative feeling has been followed by a substantial rise in the value of the digital ​‍​‌‍​‍‌​‍​‌‍​‍‌asset. 

Historical Patterns Point to Possible Rebound

Santiment’s​‍​‌‍​‍‌​‍​‌‍​‍‌ analysis indicates that, according to social media metrics, XRP is going through a huge amount of doubt and negativity that it hasn’t seen since October. The platform pointed out that a drop in sentiment similar to the one that happened on November 21, was followed by a quick bounce back. After that fall, the price of XRP went up by 22% during the next three days, thus showing a distinct pattern. The company believes that the present situation in the market is similar to the past one and thus, there might be a chance next for investors and traders to make a ​‍​‌‍​‍‌​‍​‌‍​‍‌move. 

In​‍​‌‍​‍‌​‍​‌‍​‍‌ spite of the fact that it decreased by 4.6% during the last day and was trading at under $2.10, those watching the market are still holding on to a glimmer of hope for the token. According to Justin d’Anethan of Arctic Digital, the prices are very close to surrender levels which are around $2 at this moment. In his statement, he pointed out that in the past those price ranges have always been the lowest ones which have later on profited from good regulatory news and the increase of institutional ​‍​‌‍​‍‌​‍​‌‍​‍‌investment. 

Nick​‍​‌‍​‍‌​‍​‌‍​‍‌ Ruck of LVRG Research highlighted that XRP is still able to keep its price above the very important $2 level when most of the market is going down. The interest from institutions is still very strong as spot exchange-traded funds have been the main vehicle for more than $750 million of capital inflows in the current month. Nevertheless, the daily investments in these products have slowed down lately and on Thursday only about $12.8 million of new investments were recorded. 

The five XRP ETFs on aggregate have a total asset value of $881 million and have been experiencing a steady positive flow of funds since their launch in mid-November. At the moment, the token is 42% off from its all-time high that was made in ​‍​‌‍​‍‌​‍​‌‍​‍‌July.

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