XRP Price Dips as Bearish Sentiment Spreads, Contrarian Setup Possible
XRP's price dipped over the weekend, as bearish sentiment spread across crypto communities. The decline came as Bitcoin pulled back after briefly climbing to $86,914 on October 2, before falling back to the $84,000 range.
Santiment reported that XRP's social sentiment had deteriorated sharply as October began, with its bullish-to-bearish comment ratio falling to 0.67, the lowest reading since August 17. A reading below 1.0 indicates that bearish commentary outweighs bullish discussion across platforms.
However, analysts see a potential contrarian setup. Santiment noted that 'fear is returning while some underlying market signals remain healthy, which is exactly the kind of divergence contrarian traders typically wait patiently for.'
Long-term chart patterns also suggest a possible short-term XRP bounce. Veteran trader Peter Brandt shared a long-term XRP/USD chart, highlighting an inverse head-and-shoulders formation that could support a move toward $2. However, this would be within a larger ascending triangle structure.
Other analysts, such as Ali Martinez and Rios, have also highlighted technical patterns that could influence XRP's next move. Martinez pointed to an ascending triangle on XRP's monthly chart, identifying $3.66 as a key resistance level. Rios noted that spot XRP exchange-traded funds hold roughly 1.16 billion tokens, while exchange balances have dropped from about 12.9 billion to 11 billion since April, indicating a potentially positive supply signal for the token.