XRP Crowd Sentiment Hits 9-Month Low: A Buy Signal?

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XRP Crowd Sentiment Hits 9-Month Low: A Buy Signal？

• XRP retail buyers have been on a selling spree since the recent crypto crash.
• Robust fundamentals for XRP suggest an imminent market rebound in the near term.
• The XRP/USD pair has been hovering in oversold levels as several indicators flash a buy signal.

XRP price climbed above $2.40 (as of October 21), staging a significant recovery just 10 days after dipping below $1.90. This rebound unfolds as XRP crowd sentiment plunges to its most fearful level in nine months, according to on-chain analytics firm Santiment.

Santiment data highlighted that the current market predicament is an XRP buying opportunity since prices typically move in the opposite direction to retail expectation.

Why XRP Is Moving Today: Retail FUD vs. ReboundHigh Demand From Whale Institutional Investors

During the past two weeks, the demand for XRP by whale investors has remained relatively high. For instance, a weekly market report from CoinShares shows the XRP ETF hype resulted in a net cash inflow of about $73.88 million to XRPs investment products last week.

As such, the XRPs investment products have registered a net cash inflow of about $1.96 billion year-to-date, thus currently holding a total of $2.45 billion in assets under management (AUM).

On Monday, David Schwartz, former Ripple CTO, announced that he will join Evernorth, a newly formed XRP treasury company, as a strategic advisor. Notably, Evernorth raised $1 billion via a merger with Armada Acquisition Corp to buy XRP for its treasury management.

Technical Tailwind amid Clear Regulatory Clarity

The XRP price is well-positioned to rebound in the near term after several indicators dropped to macro oversold levels. In the weekly timeframe, the XRPs Stock RSI has dropped to the lowest level since March 2025, thus signaling an imminent rebound ahead.

In the daily timeframe, the XRPs Relative Strength Index (RSI) has been forming a bullish divergence amid falling prices. Additionally, XRP price has been hovering in the lower band of the daily Bollinger Bands, suggesting a rebound after being oversold.

Capital Rotation amid Macroeconomic Uncertainties

The XRP price is well-positioned to rebound in the near future, fueled by anticipated capital rotation from highly valued assets such as gold and silver. Amid the ongoing U.S. government shutdown and global macroeconomic uncertainty, XRP and the wider crypto market have emerged as a better alternative investment.

Strong XRPL Growth Fueled By Ripples Strategic Acquisitions

Ripple Labs has made deliberate moves to improve the XRPL adoption, thus enhancing XRPs liquidity and volume. For instance, Ripple recently finalized the acquisition of GTreasury for $1 billion to enhance corporate treasury management.

Earlier this year, Ripple announced the acquisition of Hidden Road, a prime brokerage firm, for $1.25 billion. As such, Ripple has bolstered the mainstream adoption of XRP by institutional investors.