Retail Sentiment for XRP Shifts from Greed to Extreme Fear – Could This Signal a Bullish Turn?

Jakarta, Pintu News – The price of XRP (XRP) has dropped below $2, which translates to a drop of about 19% from its peak on January 5, 2026. This decline has many investors worried. However, analysts still see a number of positive signals that could support a price recovery.

This article discusses the main factors underlying this view. The analysis is based on social data, trading activity, and the latest developments from the exchanges.

Retail Sentiment Turns Bearish Amid Price Correction

XRP is experiencing a sharp change in sentiment. Positive/Negative Sentiment data from Santiment-a social media discussion-based market sentiment analytics platform-shows that XRP has entered into the “Extreme Fear” zone. Whereas, just a week earlier, the same metric still reflected greed.

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Santiment notes that historically, extreme sentiment conditions are often a sign of potential market reversals. Markets tend to move against the expectations of the majority.

“Historically, this high level of negative commentary has often triggered rallies. Prices often move against retail investors’ expectations,” Santiment reports.

Although these observations point to a possible positive scenario, such a rapid change in sentiment in such a short period of time reflects uncertainty and inconsistency among retail traders. This kind of instability usually does not favor a sustained upward trend.

Negative Funding Indicates a Potential Trend Reversal Pattern

Market data is signaling another reversal. An analyst from CryptoQuant identified a negative funding rate in perpetual futures contracts, signaling an excessive buildup of short positions.

The funding rate is the periodic payment between parties holding long and short positions in the perpetual futures market. If the number is negative, it means that traders with short positions pay to those holding long positions. Historically, similar conditions have often preceded XRP price recoveries.

Data from CryptoQuant shows that this pattern has appeared twice since 2024 – in August-September 2024 and April 2025. In both periods, negative funding rates preceded significant price spikes.

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“Historically, the market tends to move against the late consensus. The accumulation of short positions does create short-term selling pressure, but it also builds hidden buying pressure. If prices start to rise, these short positions can be liquidated and accelerate the price increase,” explained CryptoQuant analyst Darkfost.

Binance Listing XRP/RLUSD Pair, Increasing Trading Volume

Positive developments from the exchange side also strengthen XRP’s prospects. On January 21, 2026, Binance announced the listing of a new trading pair: XRP/RLUSD.

Ripple CEO, Brad Garlinghouse, welcomed the move. Trading RLUSD on Binance gives the stablecoin wider exposure. This expansion strengthens the XRP Ledger ecosystem and can indirectly support the XRP price.

The listing also opens up additional liquidity channels for both XRP and RLUSD. In the long run, if market conditions are favorable, increased liquidity could deepen the market, reduce price volatility, and attract new capital flows.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• BeInCrypto. XRP Retail Sentiment Shifts From Greed to Extreme Fear – A Bullish Signal? Accessed on January 22, 2026