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XRP Shows Divergent Sentiment Compared to Bitcoin

XRP shows high fear levels as ETF hype fades, diverging from Bitcoin and attracting institutional attention.

XRP Shows Divergent Sentiment Compared to Bitcoin
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XRP Fear Zone Reaches Highest Level Since October

Analytics platform Santiment reports that XRP is exhibiting different patterns compared to Bitcoin in terms of fear, uncertainty, and doubt (FUD). Over the past two months, XRP has lost approximately 31% of its value, and social sentiment data indicates that negative sentiment is at its highest level since October.

Extreme Sentiment Indicators

Santiment uses colored circles on its charts to highlight extreme sentiment days. Red circles appear when bullish comments significantly outnumber bearish ones, referred to as the “greed zone.” Green circles appear when bearish comments dominate, known as the “fear zone.”

According to Santiment, the last time XRP reached similar levels of fear on November 21, its price surged 22% over the next three days before optimism returned and the rally paused. The platform suggests that current conditions resemble that previous scenario.

ETF Hype Falls Short of Expectations

Despite the launch of multiple spot XRP ETFs since mid-November from issuers including Canary Capital, Bitwise, Franklin Templeton, Grayscale, and 21Shares, XRP has underperformed relative to expectations. These launches did not trigger sell-the-news events, as there were no preceding rallies.

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Ripple CEO Highlights Institutional Demand

Ripple CEO Brad Garlinghouse recently commented on the ETF market, rejecting claims of overhype. He stated, “Robust inflows have already surpassed $700 million. This shows that there is pent-up demand from institutional investors and those who want access to the token without dealing with custody.”

The observations from social sentiment and the ongoing institutional interest provide insight into XRP’s market behavior and its divergence from Bitcoin in recent weeks.

XRP Shows Divergent Sentiment Compared to Bitcoin

XRP Shows Divergent Sentiment Compared to Bitcoin
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