XRP investors are turning increasingly bearish as social sentiment surrounding the cryptocurrency slips deeper into negative territory.
Indeed, these on-chain insights come at a time when XRP is struggling to hold onto the $1.30 support level, and if negative sentiment persists, the asset could crash to $1.
Notably, XRP’s positive-to-negative commentary ratio has dropped to just 1.1 bullish comments for every bearish comment, marking the highest level of crowd fear in roughly three weeks, according to insights shared by Santiment on May 26.
The data indicates that sentiment has entered what analysts describe as the “FUD zone,” an area historically associated with heightened skepticism and panic among retail traders.
However, past market behavior suggests such periods of fear have often preceded short-term rebounds for XRP.
Previous declines in sentiment into the same zone were followed by price stabilization or recovery rallies as selling pressure eased after weaker hands exited the market.
The sentiment outlook also highlighted the opposite pattern during periods of excessive optimism.
When bullish commentary surged deep into the so-called “FOMO zone,” XRP frequently approached local price tops before reversing lower, reflecting overheated market positioning.
XRP’s dropping liquidity
At the same time, broader market indicators continue to paint a cautious outlook for XRP. In this regard,CryptoQuant data shows Binance’s 30-day XRP liquidity index has fallen to its lowest level since January 2020.
Historically, declining exchange liquidity can amplify price volatility because thinner order books make it easier for large buy or sell orders to move the market sharply.
The liquidity decline comes as XRP trades well below its recent highs near $3.04. The monthly chart shows the asset struggling to maintain momentum after a steep correction from its 2025 peak.
What next for XRP price?
Meanwhile, another analysis by prominent crypto analyst Ali Martinez in an X post on May 26 showed that XRP’s long-term parallel trading channel suggests the mid-range near $0.73 could emerge as a key accumulation zone if the current downtrend continues.
The outlook indicates this level has historically acted as a major support area within the broader cycle.
For now, XRP remains caught between deteriorating market sentiment and the possibility of a contrarian rebound.
By press time, XRP was trading at $1.34, down about 1.3% in the past 24 hours. On the weekly timeframe, the asset has declined more than 2%.
