XRP Hits ‘Extreme Fear’ After 19% Drop

The retail crowd is capitulating on XRP, according to the recent data provided by Santiment. 

However, for contrarian investors, that might be the signal they have been waiting for.

According to the latest social sentiment data, the XRP market has fallen into "Extreme Fear" territory. 

This comes after a disappointing 19% correction from its year-to-date highs on January 5. 

The drop has soured the mood among small retail traders. They went from euphoria to pessimism within less than three weeks. 

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Since peaking near $2.40 in the first week of January, XRP has bled value. The popular altcoin recently plunged back under the psychological $2.00 mark.

However, seasoned market watchers note that such extreme negative sentiment often acts as a counter-indicator. Historically, when the "crowd" consensus leans heavily bearish, prices have a tendency to move in the opposite direction. Late shorts end up being squeezed. 

"Prices move the opposite to retail's expectations more often than not," the data analysis suggests.

If history repeats, the current wave of pessimism could mark a local bottom, setting the stage for XRP to challenge resistance levels once the fear subsides.

Bullish prediction from Ripple CEO

In the meantime, Ripple CEO Brad Garlinghouse appears to be unfazed by the current market correction. 

As reported by U.Today, the Ripple boss recently went on record, predicting that cryptocurrency prices could surge dramatically higher. 

A recent research note from Standard Chartered projected that XRP could surge to $8.00 later in 2026.