XRP has dropped nearly 20% from its early-2026 highs, pushing market sentiment into the “extreme fear” zone as it trades below $2. While retail traders are increasingly pessimistic, Santiment notes this level of fear has historically acted as a contrarian signal, often preceding short-term rallies.

Past data shows $XRP has rebounded multiple times after similar sentiment dips. Despite recent ETF outflows and a 7.5% weekly decline, XRP has bounced from its $1.80 low and is trading around $1.94, suggesting early signs of stabilization and a potential relief rally ahead.