XRP Hits ‘Extreme Fear’ Levels – Why This Is Secretly Bullish

XRP’s social sentiment just dived to ‘extreme fear’ levels: a historically-proven rally starter in disguise?

Ripple’s native token XRP is still battling out with the bears at the $1.90 territory on Friday afternoon. The support-turned-resistance at $1.90 is particularly important in determining the near-term sentiment, which has lately been nothing short of bearish.

When Extreme FUD Levels Gives Rebound Signs

According to a recent analysis from Santiment, XRP’s retail holders have once again reached ‘extreme fear’ territory, while the broader markets remain in regular fear levels. While this might sound negative at first glance, the social blockchain specialists at Santiment argue it’s not exactly so.

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The 19% backdrop since the January 5, 2026 high has led to plenty of bearish commentary on the OG asset across social media platforms, including X & Reddit. The ultra-high level of fear, uncertainty & doubt (FUD) hints at something else – in most cases, this precedes a price rally, as the general crowd’s sentiment is usually way off.

Bears Lurking Around For XRP’s $2 Recovery Efforts

This makes it easier to imagine an XRP rebound to $2 this month, but the profit-taking isn’t going anywhere. According to Santiment’s statistics, XRP’s price above $2.11 has produced at least three ‘sell’ signals in January, while the $2 – $2.10 area is deemed ‘unpredictable’.

For the time being, XRP’s rebound can be considered postponed due to calm trading action. The third largest digital asset scooped up just above $2 billion on Friday instead of the more typical $5 billion & beyond.

On the Futures side, traders have also been more careful. The trading volumes on leveraged XRP markets slumped by 39% since yesterday, counting up $3.67 billion. Moreover, CoinGlass data points to more trouble for the bulls, as long XRP price plays took $2.10M out of $2.32M in liquidations, even though the OI funding rate was still dwelling in positive areas.

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People Also Ask:

What does ‘extreme fear’ mean in the context of XRP sentiment?

It refers to Santiment’s metric tracking the ratio of positive to negative commentary on social media platforms.

Why is this considered secretly bullish for XRP?

Contrarian indicators suggest that extreme fear often marks capitulation points, where selling exhausts and prices rebound.

What historical examples support this bullish interpretation?

Santiment’s data highlights patterns where XRP’s fear spikes preceded gains: for instance, fear lows around January 18, 2026, aligned with a buy signal.

What is XRP’s current price and market context?

As of January 23, 2026, XRP trades in the lower $1.90 range, down approximately 19% from its January 5 peak of about $2.35.

Are there risks to this bullish contrarian view?

Yes—while fear can signal bottoms, prolonged bearish sentiment could indicate deeper issues, whether regulatory or other.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaševskis is a DailyCoin Journalist, covering memecoins & latest developments. Tadas has moderate holdings in SHIB, HBAR, LTC, MATIC and a selection of low-cap meme currencies.

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