XRP slipped towards the $2 mark on Friday morning as social sentiment around the token sharply deteriorated, with new data from analytics firm Santiment showing the deepest run of bearish commentary since October.
The change in public sentiment comes after a two-month decline of around 31%, leaving the token vulnerable to further decline if risk appetite weakens among major currencies.
Santiment’s sentiment model, which tracks the flow of positive and negative social messages in relation to price, shows that XRP is entering what the company describes as the fear zone, a level where negative comments far outweigh bullish talk.
Similar numbers at the start of the year correspond to periods of short-term holder capitulation, although not all cases have reached a sustainable bottom.
The firm noted a parallel with Nov. 21, when a comparable rise in negative messaging preceded a brief rebound of about 22% over the next three days before momentum fizzled. He suggests traders monitor whether sentiment stabilizes or continues to deteriorate, a shift that often shapes positioning in highly concentrated retail markets.
XRP has held up better than some smaller tokens, but remains susceptible to rapid deleveraging and unwinding of carry trades linked to US data releases and changes in global risk appetite.
