According to data firm Santiment, the cryptocurrency XRP, issued by payments company Ripple Labs, has experienced intense uncertainty and panic among its holders, exceeding the level of fear experienced by Bitcoin (BTC).
This feeling of extreme This is recorded in a situation where the price of XRP has fallen by 31% in the past two months.in contrast to the trajectory of Bitcoin.
Santiment’s Fear, Uncertainty, and Doubt (FUD) index shows that XRP has entered the fear zone. The green circles on the chart indicate days when bearish comments on social media unusually outnumbered bullish comments, indicating panic among investors.
Historically, periods of extreme fear like this have preceded significant increases in value. The last time panic reached this scale was on November 21st.
Currently, the latest green circle dated December 4th is “The most bearish comment since October” (Most bearish comment since October). This FUD level suggests that the market may be nearing a bottom formation before a significant rebound..
The cryptocurrency, on the other hand, has not experienced any major price changes over the past seven days, with the price established at around $2 per unit.
By comparison, Bitcoin also shows large swings between greed and fear, and these sentiment swings accurately reflect the BTC price. Days with an unusually high number of bullish comments compared to bearish comments about Bitcoin usually coincide with the Greed Zone. On the other hand, days with an abnormally large number of bearish comments correspond to the fear zone..
The difference is the intensity of the current panic. Bitcoin sentiment can fluctuate, but XRP sentiment is showing extreme levels of FUD not seen in recent months. The red circle on the XRP chart marks a day of extreme greed (greed zone) where bullish comments abnormally outnumber bearish comments, coinciding with a spike in price as observed in late November, and the rise quickly stopped.
This current scenario is similar to the pattern of recent weeks; The possibility of short-term trend changes in XRP increasesif previously observed patterns of response to panic levels are integrated. This suggests that the current situation at extreme fear levels may indicate a potential buying opportunity, similar to two weeks ago when extreme fear triggered a strong price recovery.
(Tag Translation)Bitcoin (BTC)