XRP’s price has been trading sharply towards $1 lately, with its price only a few cents away from hitting this psychological level at press time. Its weekly returns have been on the negative side too, explaining why the altcoin’s social sentiment fell on the charts.
XRP Social Sentiment takes a dive!
XRP’s social sentiment hit its lowest level since July, with the total negative sentiment having a reading of 5.8435. The ratio of positive to negative sentiment was 0.65426, reflecting a growing bearish dominance.
The broader crypto market sentiment has also traded back to fear levels with the Fear and Greed Index at 32. This suggested that the shift in social sentiment might be extending beyond XRP.
The 4-hour chart seemed to be a true testament to the sharp decline in trader sentiment. The altcoin’s price fell from $1.32 to $1.15, breaking below a key support level at $1.24 amid a broader market sell-off.
The breakdown of $1.24 triggered massive long liquidations and stop losses totaling more than $10.23 million, according to CoinGlass. Its Open Interest (OI) also fell from $3.78 billion to $2.77 billion.
Stalling XRP ETF net inflows have worsened the situation too. This month, for example, the ETFs had only one day of outflows, with the rest of the days being inactive. All these factors precipitated XRP’s sharp descent to $1.15.
Still, all may not be lost, with XRP’s price still holding above $1.15. The buying volume exceeded that of sellers too, hinting at a breakdown in selling pressure.
Ripple CEO Brad Garlinghouse’s ‘North Star’ comments during the Ripple Swell event about XRP and the XRP Ledger have kept some optimism going around too.
Is there reason to be optimistic?
CEO Brad Garlinghouse has repeatedly described XRP and the XRP Ledger as Ripple’s ‘North Star,’ which serves as the core purpose and guiding principle of the company.
This was his response in the context of whether the Ripple USD [RLUSD] stablecoin is shifting focus away from the chain’s native token, XRP. According to the exec, RLUSD is merely competing with other stablecoins.
Additionally, the $1.15-level was the last lower high before a market structure shift turned XRP bullish. Hence, the ongoing decline could just be a retest of the structure shift. Only time will tell if that’s true though.
In case XRP falls below the level, the next demand zone would be $0.98.
Final Summary
- XRP’s social sentiment fell to its lowest level in four months as the price slipped below $1.24.
- Brad Garlinghouse’s ‘North Star’ comments are keeping the optimism around XRP, XRP Ledger alive.
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