According to analytics platform Santiment, XRP is behaving differently compared to Bitcoin in terms of fear, uncertainty, and doubt (FUD).
Over the past two months, XRP has lost about 31% of its value, and social data shows that the current level of negative sentiment is the highest since October.
The silver lining
On the chart Santiment provides, they use colored circles to show extreme sentiment days. Red circles appear when there are significantly more bullish comments than bearish ones, which they call the "greed zone."
Green circles appear when bearish comments far outnumber bullish ones, called the "fear zone."
The last time XRP experienced similar levels of fear on November 21st, its price quickly surged by 22% over the next three days before optimism returned and the rally stopped.
Santiment implies that the current conditions are somewhat similar to that previous scenario. This could potentially bode well for
ETF hype has fizzled
XRP has underperformed relative to expectations built on ETF hype.
Despite multiple spot XRP ETFs launching since mid-November from issuers of the likes of Canary Capital, Bitwise, Franklin Templeton, Grayscale, and 21Shares, the price has not managed to pull off a major breakout. Their launches were not even sell-the-news events because there were no preceding rallies.
However, as reported by U.Today, Ripple CEO Brad Garlinghouse recently rejected the idea that the ETF market is overhyped. He pointed to robust inflows that have already surpassed $700 million. This, according to Garlinghouse, shows that there is pent-up demand from institutional investors and those investors who want access to the token without having to deal with custody.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team