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XRP Bears Stretch the Rubber Band Too Far as Fear Spike Could Trigger a 15% Snap-Back Rally to $1.50 This Week

The mood around XRP (XRP-USD) has turned incredibly sour, but in the world of crypto, extreme sadness often leads to a surprise jump. New data shows that negative talk about the token has reached a level not seen in two years. While this sounds bad, it often creates a “coiled spring” effect where the price snaps back because too many people are betting on a crash.

Extreme Fear Creates a Bargain Zone

When everyone is afraid to buy, it usually means the selling has reached a breaking point. Market data from Santiment shows that the ratio of positive to negative comments has dropped to a tiny 1.02 to 1.00.

This is one of the top three fear spikes seen since 2024. In the past, whenever people were this upset, specifically in February and October of last year, the price followed up with a quick recovery. Because so many traders have crowded into bets that the price will fall, even a small bit of good news could force them to buy back their positions, which creates a fast 15% rally.

XRP’s Technical Lines Create a Decision Point

XRP’s price has taken a beating lately, falling from highs near $3.40 all the way down to $1.32. This drop has pushed the token into a high-risk area where the next move will likely be very fast.

Right now, XRP is hovering just above a critical floor at $1.10–$1.12. If this floor holds, the relief rally could send the price back up toward $1.50 or $1.80. However, if the price slips below $1.10, the safety net is gone, and we could see a deeper drop toward $0.95. This makes the current spot a “reaction zone” where traders are waiting to see which way the wind blows.

The Selling Pressure Is On Its Last Legs

Indicators that track market energy, like the RSI, show that XRP is getting very close to being “oversold.” This means that most people who wanted to sell have already done so, leaving fewer people to push the price lower.

While the overall trend still looks weak, the lack of new sellers is often what starts a bounce. If the price can stay above the $1.10 mark, the market might finally get a breather. Investors are watching closely because, at these extreme levels of fear, the move up or down usually happens decisively rather than slowly.

At the time of writing, XRP’s price is sitting at $1.3273.

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Annika is an Editor and Writer at TipRanks. She delivers in-depth company analysis and market commentary on stocks & cryptocurrencies listed on NASDAQ, NYSE, LSE, and many others. She previously worked at the firm as a TV anchor and market analyst, where she gained extensive experience translating fast-moving news into high-quality video content for a global audience. Annika draws on more than five years of experience in the financial domain. Her academic foundation comes from the London School of Economics and Cass Business School, where she studied Accounting & Finance. She sharpened her technical skills within the Investment Banking Division at Morgan Stanley before moving into fund management at AlmaStone. Driven by a passion for clarity, Annika founded Finpact, an educational platform designed to make complex financial concepts easy for everyone to understand. She focuses on keeping her research-led content simple and crisp. Her goal is to provide actionable insights that help investors make better decisions in both the traditional stock and cryptocurrency markets. Outside of her financial passions, Annika enjoys experimenting with new recipes in the kitchen, doing activities with her dog, and traveling.