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- Retail FUD at record highs may indicate a strong buy signal.
- Whale and institutional inflows provide key support.
- Technical patterns point to $4 potential, ETF approval could boost further.
On-chain data provider Santiment reports that XRP is experiencing an unusually high level of retail fear, uncertainty, and doubt (FUD), similar to levels last seen during the 2020 Trump tariff announcements. Surprisingly, this bearish sentiment may signal a buying opportunity. Historical trends show that periods with more negative commentary than bullish chatter often precede price rebounds for XRP.
😮 XRP is seeing it's highest level of retail FUD since Trump's tariffs were announced 6 months ago. There have been more bearish comments than bullish for 2 of the past 3 days, which is generally a promising buy signal. Markets move opposite to small trader expectations. pic.twitter.com/flO7jjlo9m
— Santiment (@santimentfeed) October 7, 2025
The dip comes amid a mix of factors: profit-taking by Ripple co-founder Chris Larsen, a delay in the approval of a spot XRP ETF, and cautious whale activity. Yet, analysts remain optimistic, pointing out that the support level at $2.80 has seen strong institutional interest, which could prevent further downward moves.
Whales, Institutions, and Market Dynamics
Despite the bearish retail sentiment, XRP whales and institutional investors are showing resilience. CoinShares’ latest Crypto Funds Inflow report highlights a record $219 million in XRP inflows, lifting total assets under management to $3.266 billion. Traders and analysts note that a similar dynamic helped XRP during the SEC lawsuit phase, where coordinated support prevented major price drops.
The combination of whale accumulation and rising institutional participation may set the stage for a structural rally, particularly if retail panic continues.
Technical Patterns Point to $4
XRP is currently trading at $2.96, moving within a falling wedge pattern—a formation that often precedes upward breakouts. Analysts, including Lark Davis, suggest that overcoming the descending resistance line could spark a rally to $4. Should XRP fail to break out, traders are watching key support levels at $2.94, $2.90, and $2.80.
Also Read: Ripple National Trust Bank Approval: What XRP Investors Must Know This October 2025
Additionally, approval of a U.S. spot XRP ETF could further accelerate bullish momentum, with some price models projecting a potential $5 target. Derivatives markets show mixed sentiment, but increased trading volume and rising futures open interest indicate strong engagement from traders.
A Strategic Buy Opportunity
XRP’s current combination of high retail FUD, institutional inflows, and favorable technical patterns positions it as a promising buy-the-dip candidate. Traders monitoring chart patterns and ETF developments may find this an opportune moment to accumulate, while keeping an eye on key support levels.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
