XRP Scores High on Sentiment as BTC and ETH Turn Extremely Bearish

TLDR

• XRP’s sentiment score is 2.19, far above Bitcoin’s 0.80 and Ethereum’s 1.08

• XRP has dropped 6.82% in 7 days, more than BTC and ETH

• Over 97 million XRP entered exchanges in four days, worth $140 million

• February 2 saw $2.51B XRP losses versus $567M in gains

XRP is showing stronger trader sentiment than Bitcoin and Ethereum, according to data from Santiment. The analytics firm reported XRP’s Positive/Negative sentiment score at 2.19, more than double Ethereum’s 1.08 and nearly three times Bitcoin’s 0.80.

This sentiment strength comes as XRP’s price fell 6.82% over the past week. By comparison, Bitcoin and Ethereum dropped by 4.97% and 4.92%, respectively, based on CoinMarketCap data. Despite XRP’s larger price decline, traders appear more confident in its outlook on social platforms.

Analyst Pav Hundal from Swyftx commented that XRP holders tend to view market corrections differently. He said, “XRP doesn’t move wildly outside the bounds of the rest of the market,” adding that the asset’s community has strong conviction in its fundamentals.

XRP Sentiment Shift May Signal Relief Rally

Santiment noted that the current bearish mood across the crypto market could lead to a short-term rally. It said that when traders display disbelief or fear, markets often respond with a temporary price recovery.

The Crypto Fear & Greed Index from Alternative.me supports this view, posting a score of 12—its lowest since December 16. This suggests investors are displaying heightened caution.

Meanwhile, the Altcoin Season Index is at 32 out of 100, placing the market in what it calls “Bitcoin Season.” This shows traders still prefer Bitcoin over riskier assets despite the downturn.

Bitwise CIO Matt Hougan said on X that “Crypto Twitter” has just started recognizing the ongoing market weakness. He noted, “We have been in a crypto winter since January 2025,” but added that the sector might now be closer to recovery.

XRP On-Chain Data Shows Weak Market Structure

Despite strong sentiment metrics, XRP’s on-chain activity tells a different story. According to Glassnode data, XRP’s Net Unrealized Profit and Loss (NUPL) metric is nearing a capitulation zone. Unrealized losses now outweigh profits, a condition that usually slows selling pressure.

Source: Glassnode

However, no strong accumulation trends have been observed so far. Santiment reported that loss-making transactions are outpacing profitable ones. On February 2, XRP transactions registered $2.51 billion in losses compared to just $567 million in profit.

This transaction imbalance suggests panic selling remains dominant. Without a shift toward buying, XRP may remain vulnerable to more price declines.

Rising Exchange Balances Increase Sell Pressure

Data also shows that over 97 million XRP, worth $140 million, moved into exchange wallets over the last four days. Such inflows usually signal plans to sell, rather than hold for the long term.

This increase in exchange balances often adds to downward price pressure. Unless this trend slows, it may continue to weaken XRP’s short-term price support levels.

Santiment’s data suggests that while sentiment is more optimistic, market behavior remains cautious. Without a clear return of buying activity, XRP’s recovery remains uncertain even as traders stay hopeful.

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