XRP price is 63% below its all-time high.
For Santiment, at this level of pesismism the probability of a price rebound increases.
The cryptocurrency XRP, issued by the company Ripple Labs, registered yesterday, April 12, its most bearish and pessimistic level of social sentiment in the last two years among the investment community.
This occurs while the asset is located in the «FUD Zone» or zone of fear, uncertainty and doubt, an indicator that usually precedes changes in the direction of the market, according to voiced by analysis firm Santiment.
The origin of this strong pessimism lies in the impact of the current “crypto winter.” This is a prolonged period of low prices and stagnation which has hit the holders of XRP.
This is supported by the historical performance of the asset. Currently, the price of XRP is 63% below its all-time high of $3.48, reached on July 17, 2025, as reported by CriptoNoticias. This figure shows a notable difficulty in recovering its previous valuation levels, which has generated exhaustion in users.
The firm maintains that this level of discouragement often functions as a contrarian indicator. According to his analysis, When pessimism is so high, the probability of a price rally ironically increases. “Prices move in the opposite direction to the crowd’s expectations,” explains the platform after observing how the retail investor finally turns his back on the currency.
In this context, the firm indicates that “this type of signal can help you capitalize on its pessimism if you are willing to be a little more patient.” The analytical model suggests that with a massive capitulation, the market could be technically oversold. This means that the selling pressure has reached such an extreme that potential sellers have already exited the asset.
It is worth clarifying that the Santiment sentiment index for XRP works as a social thermometer that processes network data like X, Reddit and Telegram. Unlike technical indicators that measure only price, this model uses natural language processing. Thus, it detects whether the predominant narrative is one of “greed” or “fear” through the volume of keywords.
The following chart of the asset shows two clear psychological boundaries for investors. The horizontal red line marks the “FOMO Zone”, referring to the fear of being left out of an increase. “When the ratio is too high, people are too euphoric,” which is usually a sign of caution or a possible price ceiling.
On the contrary, the horizontal green line delimits the “FUD Zone”. “Historically, when bullish comments are replaced by this level of bearish comments, the probability of a relief rally increases significantly,” Santiment notes. The current ratio stands at 1.02 bullish comments for every bearish comment, a balance that reflects an unusual disdain for the asset.
In short, the XRP cryptocurrency would be at an inflection point today where investor surrender could be the necessary fuel for an unexpected bullish movement. Since the positive feedback ratio is so low, Sentiment theory suggests that “weak hands” have already sold. This would pave the way for the price to hit a bottom and begin a recovery.