XRP Faces Major Sentiment Decline Amid 30% Price Drop

XRP is currently experiencing a downturn, trading near $2.06 after a 30% decline over two months. The market sentiment has turned negative, with bearish messages increasing, as reported by data firms and traders.

Market Sentiment

Santiment's analytics indicate that XRP's social sentiment has moved into the "fear zone," where negative talk outweighs optimism.
Previous patterns suggest that extreme pessimism could lead to a price rebound if buying pressure increases.

Price Movement and Market Conditions

XRP declined about 4% to $2.04 recently, with a monthly loss of around 6%.
The overall crypto market decreased by 1% to $3.22 trillion, affecting many altcoins.
Order books have thinned, and leveraged positions reduced, leading to less market depth.
Uncertainty over US policy decisions contributes to cautious trading behavior.

Institutional Developments

Ripple aims to expand its institutional reach, potentially supporting XRP demand in the long term.
The launch of digital asset spot prime brokerage services in the US through Ripple Prime marks a strategic move.

Market Observations

Despite prevailing FUD, some analysts believe XRP could rise towards $2.50-$2.75 if liquidity flows increase.
Cameron Scrubs, founder of Tradeship University, continues to advocate for buying XRP amidst current market conditions.

Traders are closely monitoring on-chain data and social signals for potential sentiment shifts, which may influence future price movements.