Xrp Hits ‘Extreme Fear’ After 19% Drop

Retail investor sentiment around XRP has turned sharply negative following a 19% price decline from its early January highs, pushing the asset into “Extreme Fear” territory, according to data from Santiment. The altcoin, which briefly peaked near $2.40, has since fallen below the $2.00 threshold, causing a swift shift from optimism to pessimism among small traders.

Analysts suggest that such negative sentiment may act as a contrarian indicator, historically preceding market rebounds as bearish consensus often leads to price reversals. Ripple CEO Brad Garlinghouse remains optimistic, and a recent Standard Chartered report forecasts that XRP could reach $8.00 by late 2026.