As uncertainty increases in crypto markets, XRP’s social sentiment has fallen to its lowest level since October. According to Santiment data, the XRP community has been dragged into the “fear zone” again. The volatility in the overall market and the increasing uneasiness of investors lead to the question “What’s next?” brought the question back to the agenda. However, analysts remind that such periods of intense fear have been the precursor to many strong rallies in the past. Looking at XRP’s past performance, it is often seen that sharp rallies occur when the market is at its most desperate. As a matter of fact, Santiment states that such extreme negative sentiment has historically created a strong reversal signal for XRP.
Social Sentiment is at the Bottom, the Market is Uneasy
The previous similar sentiment decline occurred on November 21, when XRP rose 22 percent in just three days, reversing expectations. Although this rise lost momentum in a short time, the current situation is strikingly reminiscent of that period. This strengthens the possibility that a new window of opportunity may be quietly opening in the market.
The long-maintained ascending trend line in XRP’s technical outlook is still standing, but the pressure is increasing. While the price has been rejected at the upper resistance band with every attempt to rise, two descending trend lines that have formed since the middle of the year have trapped XRP in a narrowing compression triangle. This squeeze pushed the asset back into “hold the line” territory.
However, analysts emphasize that this diagonal support is not as solid as the strong horizontal level at $1.90. A drop below this critical level, which has not been broken for months, could weaken the bulls’ hand. However, if XRP manages to break one of these falling trend lines on the upside, it could ignite a rapid rise, especially when market sentiment is so pessimistic.
A Similar Scenario Was Also Seen in Avalanche
A situation similar to the chart in XRP was recently reported by Avalanche. 
$12.95 It happened on the (AVAX) side. AVAX, whose social sentiment fell extremely negative, initiated a recovery approaching 30 percent in a few days, showing how market psychology can create sudden jumps when combined with technical structure. This example reminds us how critical looking at the emotional intensity of investors is in understanding price movements.
In summary, XRP stands at an important turning point both technically and in terms of investor psychology. While fear levels reaching historical lows usually creates opportunities, testing critical support levels will determine the direction of the movement. At this point, investors’ close monitoring of both sentiment data and price compression may provide important clues before a possible major breakout.
