Data shows the XRP social media sentiment has dropped to its third-worst level in the past two years, a sign that the crowd has turned bearish on the asset.
XRP Positive/Negative Sentiment Has Declined RecentlyThe metric works by filtering for social media posts/threads/messages containing mentions of the asset and putting them through a machine-learning algorithm to separate between bullish and bearish comments. Then, it counts up the number of each and finds their ratio.
Now, here is the chart shared by Santiment that shows the trend in the Positive/Negative Sentiment for XRP over the last couple of years:
As displayed in the above graph, the XRP Positive/Negative Sentiment shot up to high levels in December and January, implying that social media users became optimistic about a market turnaround following a pause in the bearish momentum.
That is, until the past week rolled around. From the chart, it’s visible that the Positive/Negative Sentiment has plummeted for XRP, a potential sign that the drawn-out consolidation has finally broken trader conviction.
Currently, the metric is sitting at 1.02, which suggests that there are about as many positive posts related to the asset as negative ones. While this still doesn’t signal an outright shift to a bearish dominance, it’s still a pretty low level when compared to the last two years. “According to our weekly social data for crypto’s #4 market cap, FUD is at its 3rd highest point in the past 2 years,” noted the analytics firm.
The effect tends to be the strongest inside the “FUD” and “FOMO” zones highlighted by Santiment in the chart. The latest decline in the Positive/Negative Sentiment has taken XRP into the former of the two regions. “Historically, when bullish comments get replaced by this level of bearish ones, the probability of a relief rally climbs significantly higher,” explained the analytics firm.
XRP PriceAt the time of writing, XRP is floating around $1.32, down 1% in the last seven days.
