XRP Surges to $2.50 as Market Sentiment Hits 9-Month Low, Is It Time to Buy?
- XRP trades around $2.50 as traders cut exposure and market volumes continue to decline.
- Whales stay inactive, reflecting uncertainty as traders wait for the market’s next direction.
- On-chain readings show a cooling phase marked by cautious sentiment among participants.
XRP has staged a sharp comeback, climbing above $2.50 after hitting its lowest sentiment point in nine months. Analysts from market research firm Santiment reported that the recovery followed an intense wave of retail pessimism, with traders selling at losses amid widespread fear. Historical patterns suggest such periods of profound negativity often precede major rebounds, indicating that sentiment may once again be working as a contrarian signal.
Fear on the Timeline, Strength on the Chart
According to Santiment’s recent findings, the ratio of positive to negative comments about XRP fell sharply after the token dipped below $1.90 earlier this month. Within days, however, XRP reversed direction, climbing more than 30% to retake the $2.50 zone.
The analysts noted that this kind of move frequently appears when traders exit their positions in frustration while long-term holders quietly accumulate. The research pointed out that this drop in optimism mirrored conditions last seen in late January, a period that preceded a multi-week rally.
“Prices typically move opposite to retail’s expectations,” Santiment said, highlighting how widespread selling pressure can form the base for a new advance. Observers now see the $2.30–$2.50 range as a critical support area.
A steady hold above it may attract new buyers if sentiment remains cautious. Past data suggest that when negative discussion dominates yet prices stabilize, XRP tends to build strength for the next leg upward.
Whales Remain Quiet Amid the Recovery
Market analyst Ali observed that XRP’s largest holders, often referred to as whales, have maintained a low profile over the past two weeks. Records show that wallets controlling between 100,000 and 10 million XRP have made no notable moves, either to buy or to sell, while prices recovered.
The restrained activity suggests that these deep-pocketed investors are waiting to see whether the rally can hold before taking new positions. Their quiet stance gives the impression that the latest price lift has been driven mainly by retail traders testing the market, rather than institutional demand.
Meanwhile, XRP traded around $2.41 as of this publication, losing roughly 2% in the past 24 hours after losing hold of the $2.55 mark reached yesterday. Despite the pullback, the token remains well above recent lows.
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On-Chain Data Hint at Cooling Momentum in the Market
On-chain data indicates that XRP is entering a quieter phase after a surge in trading activity earlier this month. This is evident as the token’s Open Interest dropped sharply to about $3.80 billion, down from a monthly high of $9.09 billion.
The decline suggests that traders are taking profits and reducing their exposure, a pattern that often signals the start of a short-term consolidation as markets stabilize. The shift is also visible in futures trading, where daily volume has fallen to nearly $6.13 billion from a peak of $23.50 billion.
This slowdown reflects growing caution among market participants, many of whom appear to be waiting for a clear direction before reopening large positions. The drop in activity often precedes a period of reduced volatility, with prices remaining relatively stable until fresh catalysts emerge.
At the same time, data shows roughly $13.66 million in spot inflows over the past 24 hours. That movement indicates some holders are moving XRP back to exchanges, possibly preparing to sell amid lingering concerns and fragile sentiment.
In summary, market activity has cooled as traders take a step back and sentiment steadies. With volumes thinning and large holders staying quiet, the market appears to be catching its breath. Whether this calm leads to renewed strength or a longer pause will depend on upcoming catalysts.
