A ray of hope is emerging for XRP, which may help the token reclaim the $2 resistance zone after several days of trading below that level.
In this context, the token is flashing a contrarian signal that has historically preceded strong upside moves, as market sentiment on social media turns decisively negative while price action stabilizes.
Data tracking social media commentary shows that negative sentiment is dominating discussions around the token, a condition that has repeatedly coincided with local market bottoms rather than sustained declines, according to insights shared by Santiment on December 23.
XRP social sentiment. Source: SantimentSentiment has slipped back into the fear zone, where retail pessimism has historically coincided with price rebounds, while prior spikes in greed have tended to precede corrections rather than sustained rallies. This outlook suggests accumulation rather than distribution.
XRP price consolidation
After a prolonged pullback, XRP has consolidated above recent lows as volatility tightens, with price hovering near historical sentiment extremes that have previously marked upside launch points. Similar sentiment troughs in the past were followed by recovery phases as bearish expectations faded, allowing modest demand to trigger sharp rebounds.
Focus is now on whether a rebound can carry XRP toward the psychological $3 level. While not guaranteed, past recoveries from comparable sentiment lows have produced multi-week advances, and a break above recent consolidation highs would strengthen the case for a broader trend reversal.
However, XRP will also need support from the broader cryptocurrency market to first reclaim the $2 level. In recent sessions, the token’s price action has largely been dictated by overall market sentiment.
XRP price analysis
By press time, XRP was trading at $1.90, down about 1.5% over the past 24 hours, while on the weekly timeframe, the asset is lower by roughly 0.5%.
XRP seven-day price chart. Source: FinboldTechnically, XRP remains under pressure, trading below both its 50-day simple moving average (SMA) at $2.15 and its 200-day simple moving average at $2.54, signaling sustained downside bias and a potential longer-term downtrend.
The 14-day relative strength index (RSI) stands at 41.30, a neutral reading that points to neither overbought nor oversold conditions. This leaves room for short-term stabilization, but limited bullish momentum persists amid elevated volatility of 5.29% and continued extreme fear in overall market sentiment.
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Source: https://finbold.com/xrp-just-flashed-set-up-for-major-price-rebound-is-3-next/
