The crypto market has been experiencing a strong period in recent days, although not all projects benefit equally. XRP is lagging behind the rest this time, which is causing unrest among investors. However, some analysts see the sharp tone as a positive signal and believe that the currency is preparing for a new rise.
Record Levels of Fear Among XRP Investors
The well-known blockchain analysis company Santiment has noticed a wave of negativity surrounding XRP on social media. This would be the highest level of fear, uncertainty and doubt (“FUD”) in the past six months. According to their measurements, the mood among private traders is remarkably gloomy.
XRP is currently up 3.3 percent in the past week. Compared to other projects, this is disappointing. For example, Bitcoin (BTC) and Ethereum (ETH) recorded increases of 8.7 and 11.7 percent respectively over the same period. BNB is doing even better with an increase of no less than 21.7 percent in seven days. Binance’s coin has even broken its record price.
The current FUD is just as extreme as during Trump’s trade war in April. XRP then experienced a significant decline and briefly even reached a bottom around $1.65.
Yet Santiment sees this as a possible buying signal. In previous cycles, extremely negative sentiment often appeared to be the harbinger of a recovery. According to the platform, the market regularly moves contrary to the expectations of small traders: where fear dominates, there is often room for growth.
“When the retail crowd panics, professional investors often take positions,” Santiment said.
Analyst sees bullish pattern
Crypto analyst Steph is Crypto remains positive about the prospects for XRP. In his analysis, he compares the current price structure with that of 2021, a period in which XRP suddenly rose sharply in value after a long consolidation.
According to him, the chart now shows a so-called “bullish pennant” pattern. This is a triangular consolidation that follows a strong rise. In 2021, this pattern led to a spectacular price rally.
If history repeats itself, XRP could rise towards a new all-time high of around $5.50, according to Steph. That would represent an increase of 85 percent from current levels and easily break the current record of $3.65.
Source: https://newsbit.nl/veelbelovend-koopsignaal-voor-xrp-angst-bereikt-kookpunt/
