XRP has shown remarkable resilience after a turbulent event more than $19 billion wiped out of the crypto market. The token, which had fallen below $1.90 just ten days ago, is now showing signs of strength and it looks like it will soon break above $2.50. This recovery is taking place in an atmosphere of widespread fear, uncertainty and doubt (FUD) in the market. Despite the shaky sentiment, on-chain data suggests this is a buy signal for XRP.
XRP is rebounding strongly after market capitulation
Santiments The latest data shows that The recovery of XRP from its flash crash lows around $1.90 to $2.20, and then towards $2.50, has developed concurrently with one of the most intense waves of negative sentiment recorded this year. Notably, the audience sentiment ratio on the platform reached its lowest level since January, reflecting extreme pessimism among traders.
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This extreme pessimism was the result of the XRP price crashing, along with many other cryptocurrencies. News and macroeconomic eventsin particular, the US tariff announcement on China, caused many XRP holders to sell at a loss under intense fear, uncertainty and doubt (FUD). This in turn caused the the sentiment of the crowd to refuel en masse.
Data from on-chain analytics platform Santiment shows that the ratio of positive to negative comments around XRP has fallen to 1,856, the lowest point since late January 2025. Santiment’s chart illustrates how this ratio has steadily deteriorated since mid-September. The rate fell from 1.93 on September 19 to 1.44 on October 1, before falling to 1.01 on October 8 and staying around that level for almost a week.
This continued period of pessimism shows shaken confidence among XRP traders during the recent price volatility. However, there are early signs of stabilization. The sentiment ratio is starting to recover slightly and has risen to 1.35 at the time of writing. This means some optimism is returning as XRP tries to regain $2.5.
What this means for XRP’s next step
XRP’s ability to recover under such severe FUD suggests this may be the case enter a stronger accumulation phase. According to Santiment, the low ratio of positive to negative comments is usually a buy signal, especially for traders looking to accumulate at lower prices. Santiment noted this by saying that “prices typically move opposite to retail expectations.”
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If XRP manages to maintain its position above $2.50, it can be interpreted as confirmation of renewed bullish momentum. From here, the next price targets would be prior support levels of $2.72 and $2.80 in the near term. Stronger bullish momentum would see XRP extend its rally and break above $3.
At the time of writing, XRP is trading at $2.4, down 1% in the past 24 hours.
Featured image of Pxfuel, chart from Tradingview.com