XRP Hits Fear Zone, Traditionally Favoring Price Rallies

• XRP enters a fear zone, which has often been followed by price rallies.
• According to the statistics, traders are positioning for an upside move, expecting the token price to reach $2.30.
• Although fear is high, the underlying structure of the token and derivatives shows an accumulation and not panic. 

The latest social statistics indicate that the sentiment for XRP has dropped into the zone of fear. This indicates a peak increase of negative sentiments around the token on leading crypto websites.

XRP Fear Signals Possible Price Reversal 

According to Santiment, pessimism about XRP is at its historical extremes. In the past, these levels have characteristically been turning points for this token.

Fear indicators recorded in previous cycles were near local price bottoms, with sharp, short-term price uptrends following. XRP is trading just below a key support area constructed during recent consolidation. 

Buyers have been taking control when the price reaches this area time and again. This bias changes according to a shift in its technical setup. 

Source: X

On the 4-hour chart, XRP occupies an area above the 0.786 Fibonacci retracement, which is one of the essential areas that act as a pivot point at corrective stages.

Price action also indicates recurring efforts to regain the VWAP session, which is an indication of consistent demand and zero panic selling. The effects of any sell pressure are diminishing around the current levels.

Source: TradingView

Also Read | XRP Bulls Eye $1.85–$1.90 Support As Rare RSI Divergence Appears

Derivatives Signal Upside Momentum

Although the sell volume has been falling as of late, it has not been growing aggressively. Sharp breakdowns normally happen alongside an increase in volume, but this is currently lacking.

Derivatives information confirms this positive backdrop.CoinGlass revealed a 10% increase in the token’s futures volume. With the price stabilizing, open interest has been rising steadily, and this is usually a good indicator of accumulation.

Source: Coinglass

Traders are not hedging against downside risk, but positioning for upside. This setup fits the extreme pessimistic bias cited by Santiment. 

Prediction markets still show cautiousness. The odds of XRP price by the end of the year are high, between $1.50 and $2.00. However, odds above $2 are slowly increasing. 

Source: Gemini

According to the current setup, the next important price target for the token is at $2.30. This level corresponds with one of the more important liquidity zones in the previous price cycle. 

XRP Breakout Could Target $2.30 

If the token breaks cleanly above $2, its next target will likely be $2.30. There is also a bullish bias in the overall market conditions, with XRP benefiting from such conditions.

However, a decline below $1.85 would undermine the bullish structure. Meanwhile, institutional demand for this token is still high, as evidenced by the inflow into its ETFs.

Also Read | XRP Forms Rounded Base Near $1.88–$1.90 After Strong Mid-2025 Rally