XRP Sentiment Hits Extreme Fear; TD Sequential Suggests Early Reversal — $2.03 Pivot Key
XRP is showing structural weakness despite strong institutional accumulation via U.S. spot XRP ETFs, which have netted $906M since launch. Social sentiment has collapsed to “extreme fear,” matching October lows and historically preceding short-term rebounds. Price formed a descending channel on intraday charts after a failed breakout above $2.05 — a brief surge to $2.07 on 68% above-average volume quickly retraced. XRP closed near $2.032, consolidating around a critical pivot at $2.030; a break below risks testing $2.020–$2.025 and psychological support at $2.00. Technicals: intraday momentum oscillators trend down, distribution seen on bounces, while the weekly TD Sequential flashes a potential reversal signal that could indicate early stabilization. Trader guidance: reclaiming $2.035 is needed to restore intraday momentum, and a clean move above $2.05 would invalidate the descending channel. Short-term outlook remains fragile; sentiment extremes raise odds of a bounce but a confirmed technical trigger is required to shift trend.
Neutral
The report points to mixed signals: strong institutional demand via U.S. spot XRP ETFs (net inflows $906M) provides a bullish underpinning, while price action and intraday technicals show clear weakness — a descending channel, distribution on bounces and falling momentum. Social sentiment at extreme fear historically precedes short-term rebounds, and the weekly TD Sequential flashing a potential reversal is a constructive sign for medium-term stabilization. However, the failed breakout above $2.05 and immediate retrace to the $2.030 pivot keep the near-term trend biased lower until technical confirmation. For traders, this implies a neutral-to-cautious stance: watch for reclaiming $2.035 or a decisive break above $2.05 for a bullish shift; if $2.030 breaks, expect a quick test of $2.020–$2.00 and increased downside risk. This mirrors past episodes where sentiment extremes produced short squeezes without resolving structural downtrends until key resistance levels were taken out.