XRP Retail Sentiment Flips Bearish, Flashing a Contrarian Buy Signal

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Retail traders are showing their most bearish tilt since the panic surrounding Trump’s tariff announcements bank in April.

By Shaurya Malwa|Edited by Stephen Alpher

Updated Oct 7, 2025, 1:30 p.m. Published Oct 7, 2025, 1:17 p.m.

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  • XRP’s bearish commentary ratio has dropped below 1.0 twice recently, indicating potential fear-driven selling pressure.
  • Historical patterns suggest that when retail sentiment is overwhelmingly negative, it can signal a buying opportunity.
  • The current negative sentiment around XRP may act as a tailwind if demand increases, following past trends of market reversals.

XRP is catching retail skepticism again in a gauge that has historically proven profitable for contrarian bets.

Data from Santiment shows the token’s bullish-to-bearish commentary ratio slipped under 1.0 twice in the past three days — October 4th (0.74) and October 6th (0.86) — levels that historically line up with fear-driven selling pressure.

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For context, the last time retail sentiment was this negative was six months ago, around the announcement of Trump’s tariff plans. That episode preceded a bottoming setup, with prices later grinding higher even as commentary stayed cautious.

Santiment frames the dynamic simply. When small traders lean too hard one way, markets tend to break the other.

September’s top offered the opposite lesson. On the 17th, bullish comments overwhelmed bearish ones by a ratio of 3.21 to 1 — marking euphoric levels that coincided with XRP topping out above $3.14 before sliding back.

The setup highlights the feedback loop between narrative and tape. A community that piles into optimism at highs often sets up a reversal, while a crowd leaning on despair while prices stabilize or inch higher tends to mark the start of another leg up.

For XRP, that means the current wall of FUD may be less a warning and more a tailwind — if demand steps in to prove the contrarian signal right.

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