XRP Sentiment Turns Bearish Amid Increased Network Activity

XRP's social sentiment has taken a bearish turn, with a bullish-to-bearish ratio of 0.67. This means there are 67 optimistic comments for every 100 pessimistic ones. According to Santiment, a crypto analytics firm, this ratio has been below 1.0, indicating negative commentary is the majority across various crypto communities, including X, Reddit, and Telegram.

The token's sentiment reading is weaker than Ethereum's, with a ratio of 0.89. However, ETH's sentiment has also turned negative, reaching its lowest level since June 7. The current mood is different from periods when widespread expectations favored continued gains, and Santiment warns that neither asset is guaranteed to bounce immediately.

The bearish tone surrounding XRP contrasts with the enthusiasm surrounding Bitcoin during September's advance. XRP's average unrealized return is minus 11.75% for coins active within the past year, and network activity increased during the rally, with 1,917 large XRP transactions and 3,647 new wallets recorded.

A contrarian approach considers opportunities that run against the crowd's views. Santiment's analysis favors subdued optimism and heightened fear over widespread excitement about buying a dip. The firm adds that fear is returning while some underlying market signals remain healthy, which is exactly the kind of divergence contrarian traders typically wait patiently for.