XRP is currently experiencing its highest level of retail fear, uncertainty, and doubt (FUD) since the announcement of trade tariffs by former US President Donald Trump six months ago, according to blockchain analytics platform Santiment. This report highlights a transition from a bullish to bearish sentiment ratio as of Tuesday.

😮 XRP is seeing its highest level of retail FUD since Trump’s tariffs were announced. There have been more bearish comments than bullish for 2 of the past 3 days, which is generally a promising buy signal. Markets tend to move in the opposite direction of small trader expectations. Source

XRP’s value dropped significantly following Trump’s tariffs, with a notable decline of 20% to below $1.80, aligning with a broader market downturn.

Despite this negative sentiment, there is a silver lining. According to the analytics firm, the recent increase in bearish comments could serve as a buying signal, as historically, market movements tend to contradict the prevailing trader sentiment.

Unjustified Surge in FUD

The growing negative sentiment around XRP coincides with its recent lackluster performance while other cryptocurrencies like Bitcoin, Ether, and BNB have been setting new price records. Notably, BNB has surpassed XRP in market capitalization this week.

One analyst remarked, “Nothing to do with FUD, but just pure reality with XRP value accrual that is literally zero and doesn’t benefit holders at all.”

Past sentiment studies indicate that extreme retail FUD often leads to subsequent rallies in XRP, as evidenced by its rise to an all-time high of $3.65 in July. However, the digital asset has since plummeted over 21% and has struggled to maintain resistance above the $3 mark.

Looking ahead, the future appears to be hopeful for Ripple and XRP, with expectations for legal and regulatory clarity in 2025, coupled with increased partnerships within the traditional finance sector.

XRP Price Prediction

Currently, many retail investors remain skeptical as XRP’s price has declined by 3.8%, sitting at $2.87 at the time of this writing. Following a brief rise to $3.10 last week, it encountered strong resistance again.

Peter Brandt, a chart analyst, offers a less optimistic outlook, identifying the formation of a “classic descending triangle” and warning that a drop could occur to $2.22 if XRP closes below $2.68.

In the broader context, XRP continues to display unusual volatility, and traders should exercise caution while navigating these turbulent waters.