XRP Social Sentiment Plummets Amid 30% Drawdown as ETFs and On‑Chain Activity Diverge
XRP has seen a sharp swing to negative social sentiment, with Santiment reporting the highest bearish-to-bullish comment ratio since October. The downturn coincides with roughly a 30–31% price decline over two months; XRP trades around $2.08–$2.09, roughly 40% below its July 2025 peak. Despite the social FUD, on-chain metrics show rising activity — XRP Ledger velocity hit annual highs — and U.S. spot XRP ETFs registered consecutive net inflows (about $800–900M total across recent days), outperforming BTC/ETH ETFs during the same window. Technical levels to watch: support near $1.88–$1.92 and resistance at $2.28 (a break could target ~$2.75); weekly Stochastic RSI and other momentum indicators sit in oversold territory. Historical precedents (a social sentiment low on Nov 21 preceded a rapid 22% three-day spike) suggest extreme pessimism can trigger short-term rebounds, but sustained recovery depends on continued institutional flows and broader market direction led by BTC. Traders should monitor ETF inflows, Santiment social metrics, chain velocity, and price action around $2.28 for short-term setups while managing risk around the $1.88–$1.92 support zone.
Neutral
The combined reporting points to mixed signals that make the near-term price impact ambiguous. Bearish social sentiment and a ~30% drawdown increase downside risk and could pressure short-term selling. However, offsetting bullish inputs — elevated on-chain velocity and sustained net inflows into U.S. spot XRP ETFs (roughly $800–900M recent inflows) — provide a counterweight and a potential bid under price. Technical indicators show oversold momentum, which can fuel short squeezes or rebounds if ETF flows continue. Short-term trading implication: increased volatility and opportunity for both mean-reversion trades (buy the dip near $1.88–$1.92) and momentum shorts if $2.28 resistance holds. Long-term direction depends on whether institutional inflows persist and whether broader crypto markets (notably BTC) stabilize; absent sustained ETF demand and macro recovery, the bearish social narrative could prolong pressure. Hence, the net market stance is neutral — risks exist on both sides and trading should emphasize position sizing, stop-losses, and monitoring ETF flows, social sentiment, and support/resistance levels.