XRP has shown remarkable resilience after a turbulent event that saw more than 19 billion dollars destroyed of the crypto market. The token, which had fallen below $1.90 just ten days ago, is now showing signs of strength and it looks like it will surpass $2.50 in the short term. This rally comes amid an atmosphere of fear, uncertainty and doubt (FUD) widespread across the market. Despite shaky sentiment, on-chain data suggests this is a buy signal for XRP.
XRP Rebounds Strongly After Market Capitulation
Feelings The latest data reveals that Recovery of XRP from your sudden lows around $1.90 to $2.20, and then towards $2.50, has developed alongside one of the most intense waves of negative sentiment on record this year. Notably, the platform’s public sentiment index hit its lowest level since January, reflecting the extreme point of pessimism among traders.
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This extreme pessimism was a result of the price drop of XRP along with many other cryptocurrencies. Macroeconomic news and events.in particular the announcement of US tariffs on China, caused many XRP holders to sell at a loss under intense fear, uncertainty and doubt (FUD). This, in turn, caused the Crowd sentiment would plummet massively.
Data from on-chain analytics platform Santiment shows that the ratio of positive versus negative comments surrounding XRP fell to 1,856, its lowest point since late January 2025. Santiment’s chart illustrates how this ratio has been steadily deteriorating since mid-September. It fell from 1.93 on September 19 to 1.44 on October 1 before falling to 1.01 on October 8 and staying at that level for almost a week.
This sustained period of pessimism shows weakened confidence among XRP traders during the recent price volatility. However, there are early signs of stabilization. The sentiment index has started to recover slightly, rising to 1.35 at the time of writing. This means that some optimism is returning now that XRP is trying to reclaim $2.5.
What this means for XRP’s next step
XRP’s ability to recover under such heavy FUD suggests the asset may be entering a stronger accumulation phase. According to Santiment, the low ratio of positive to negative comments is usually a buying signal, especially for traders who have been looking to accumulate at lower prices. Santiment noted this by saying that “prices typically move against retail expectations.”
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If XRP manages to maintain its position above $2.50, it could be interpreted as confirmation of renewed bullish momentum. From here, the next price targets would be previous support levels of $2.72 and $2.80 in the near term. Stronger bullish momentum would see XRP extend the rally and surpass $3.
At the time of writing, XRP is trading at $2.4, down 1% in the last 24 hours.
Featured image by Pxfuel, chart by Tradingview.com
