XRP investment psychology shifts from greed to extreme fear, with technical indicators hinting at a short-term rebound opportunity

Source: DigitalToday Original Title: XRP Investment Sentiment Shifts from Greed to Extreme Fear… Could It Signal a Short-Term Rebound? Original Link: As XRP price drops below $2, investor sentiment has rapidly changed, shifting from greed to extreme fear. However, analysts are still optimistic about a potential rebound.

Rapid Change in Market Sentiment

XRP’s investor sentiment has sharply deteriorated amid price corrections. According to data from sentiment(Santiment), a market psychology analysis platform based on social media discussions, XRP has recently entered the extreme fear zone. Just a week ago, greed was dominant.

Santiment stated, “Historically, such extreme sentiment can be a sign of a reversal,” and “Such strong pessimism often triggers market rebounds. Prices tend to move contrary to investor expectations.” However, rapid psychological shifts in the short term indicate market instability and do not guarantee sustained upward movement.

Reversal Signal in Funding Rates

Market data also points to another reversal signal. According to crypto analytics(CryptoQuant), negative funding rates are appearing in XRP perpetual futures contracts, indicating excessive short positions. The funding rate reflects periodic payments between long and short positions in the perpetual futures market, with negative rates meaning shorts are paying longs.

Historically, such conditions have been associated with rebounds in XRP. CryptoQuant data shows that similar patterns occurred in August-September 2024 and April 2025, after which XRP prices significantly rebounded. Analyst darkpost(Darkfost) explained, “Markets tend to move contrary to the consensus. When short positions accumulate, short-term selling pressure increases, but as prices start rising, short positions are liquidated, accelerating the upward trend.”

Positive Impact from Exchange Listings

Exchange activity could also positively influence XRP recovery. Recently, a certain DEX listed a new XRP/RLUSD trading pair. Brad Garlinghouse, Ripple CEO(CEO), expressed optimism that this listing would expose Ripple’s stablecoin ‘RLUSD’ to a broader user base and strengthen the XRP Ledger(XRPL) ecosystem.

This is expected to increase liquidity for XRP and RLUSD in the long term, improve market depth, reduce price volatility, and attract new capital inflows.