XRP investor sentiment enters extreme fear stage, analysis shows

XRP investor sentiment has entered a stage of extreme fear after the asset dropped approximately 19% from its Jan. 5 peak, Coindesk reported, citing data from Santiment. This trend suggests that a significant number of retail investors have either exited the market or moved to the sidelines, a phenomenon that tends to occur toward the end of a downtrend rather than at its beginning. The current on-chain structure of XRP holders is reportedly similar to that of early 2022, with the average entry price for new buyers now lower than that of long-term holders, creating substantial downward pressure during price declines. While a market skewed heavily in one direction can sometimes lead to a contrarian rally, a swift reversal would require price stabilization and an influx of bargain hunters. If XRP fails to establish a support level and the bearish trend continues, the current downturn will likely persist.