XRP Fear Index Spikes To 6-Month High, And That Could Spark Its Next Breakout

Source Newsbtc

According to Santiment, XRP is seeing its highest level of retail fear, uncertainty and doubt in six months. That surge in negativity is being read by some analysts as a contrarian signal — fear on the street could come just before a turnaround.

While traders grumble, on-chain data shows crowd mood tipping toward worry, and Santiment points out that when retail panic grows, markets have a habit of moving in the opposite direction.

Retail Fear Hits Six-Month High

Based on reports from the blockchain analytics firm, the bullish-to-bearish ratio reached 3.21 on Sept. 17 during a wave of euphoria, then fell to 0.74 on Oct. 4 as frustration rose.

The ratio moved slightly to 0.86 on Oct. 6. Over the last three days tracked, bearish commentary outweighed bullish views for two days, which Santiment interprets as a possible bottom signal.

Traders should note that these mood swings are being measured by crowd talk, and when optimism climbed too high earlier, that was flagged as a reliable top signal.

Technical Levels To Watch

Reports have disclosed key price points that traders are watching closely. XRP is trading at $2.85 and still has not cleared the $3 barrier that it reached briefly in the past few weeks.

Support is placed around $2.60–$2.80, and analyst CryptoInsightUK says the $2.72 to $2.75 zone remains a major structural level.

Holding above that range shows buyers have stepped in repeatedly since the rally from $0.50, the analyst added. Breaks above $3.17 and $3.65 would be seen by some as confirmation of stronger upside momentum.

Analysts Expect A Possible Breakout

Based on technical notes from CryptoInsightUK, a move following the 4.236 Fibonacci extension could reach $6.90, with a larger wave potentially taking prices toward $8–$12.

Meanwhile, professor Astrones has also identified a bullish structure on charts, calling the setup “pumpy” and pointing to a narrowing range that could break higher.

Patterns like a descending triangle can break either way, so traders are watching for a clear close above the stated targets.

In the broader market, Bitcoin has shot to a new high above $126,000, and Ethereum has climbed to within 4% of its record peak.

Yet XRP has struggled to push past $3. That contrast has left some investors scratching their heads. At the same time, XRP has not fallen below $2.60 since the breakout that took it to $3.66 in July, which supports the view that buying interest exists underneath current levels.

For now, data and sentiment point toward a possible setup where fear fades before prices rise.

Featured image from Fingerlakes1.com, chart from TradingView

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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