XRP Sentiment Hits "Extreme Fear" – What It Really Means

XRP's 19% drop has plunged social sentiment into "extreme fear" (Santiment). This typically signals retail capitulation—a setup that can fuel sharp rebounds if buying resumes, as selling pressure eases and sidelined traders return.

However, sentiment alone isn't a timing tool. Worryingly, on-chain analysis shows XRP's holder structure now mirrors early 2022, a period that preceded months of sustained weakness. This suggests underlying sell pressure from recent buyers holding at a loss

The outlook now depends on price action. Stabilization could flip fear into a rally catalyst. Continued decline, however, would mean the sentiment gauge is simply confirming a downtrend in search of a bottom, not predicting its end.