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Negative Sentiment Toward XRP Hits 6-Month Peak — History Says That’s Bullish
Yahoo Finance· 2025-10-07 12:47
Core Insights - Negative sentiment towards XRP has reached its highest level in six months, which could indicate a potential price rally according to Santiment's analysis [1][4] - Retail investors are experiencing significant fear, uncertainty, and doubt (FUD), reminiscent of the sentiment during the US "tariff war" in April [1][4] Sentiment Analysis - Santiment employs a machine-learning-based sentiment analysis model to evaluate text data from social media, assigning a negative mention score of 0.7 or higher [2] - Negative mentions of XRP have outnumbered positive ones on two of the last three days, indicating a state of "crowd fear" [3] Historical Context - Previous instances of extreme negative sentiment have led to buying opportunities for institutional investors, which subsequently drove price rebounds [4] - A similar surge in negative sentiment during the US tariff war was followed by a strong recovery for XRP [4] Market Metrics - The ratio of positive to negative mentions for XRP hit a psychological low of 0.74 on October 4, and after a slight rebound, it fell to 0.86 [5] - Periods of high negative mentions are viewed as ideal buying opportunities, while high positive sentiment periods are considered optimal for selling [5] Market Capitalization - XRP has fallen to the 4 position in market capitalization as BNB has surged, with XRP's market cap at $178.89 billion compared to BNB's $180.91 billion [6][7]