XRP Starts October with Bearish Sentiment and Contrarian Opportunities
XRP started October on a weak note, with bearish sentiment spreading across cryptocurrency communities. Social data suggests that growing pessimism could create a contrarian opportunity for investors as “Uptober” begins.
The decline in XRP came as Bitcoin (BTC) pulled back after briefly climbing to $86,914 on October 2, before falling to the $84,000 range. Analysts are watching market sentiment, exchange balances, and long-term chart patterns for clues about XRP’s next move.
Santiment reported that XRP’s social sentiment had deteriorated sharply as October began. Its bullish-to-bearish comment ratio fell to 0.67, the lowest reading since August 17. A reading below 1.0 indicates that bearish commentary outweighs bullish discussion across platforms including X, Reddit, Telegram, and other cryptocurrency communities. Ethereum experienced a similar shift, with its bullish-to-bearish commentary ratio falling to 0.89, its lowest since June 7.
The firm suggested that the growing pessimism could present a contrarian setup. “Fear is returning while some underlying market signals remain healthy, which is exactly the kind of divergence contrarian traders typically wait patiently for,” Santiment wrote. Veteran trader Peter Brandt presented a more nuanced technical picture for XRP, highlighting an inverse head-and-shoulders formation that could support a short-term bounce toward $2.
Analyst Ali Martinez identified an ascending triangle on XRP’s monthly chart, with $3.66 as a key resistance level. He suggested that a monthly close above this threshold could open the way toward $31.87. Analyst 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, a potentially positive supply signal for the token.
At press time, XRP was trading at $1.51, up 0.51% over 24 hours, with a market capitalization of about $95 billion and daily trading volume of $2.01 billion, according to CoinMarketCap.