- XRP enters extreme fear zone with highest FUD levels since October.
- Santiment identifies similar sentiment setup before recent 22% rally.
- XRP ETFs record $12.84M daily inflow and $887.12M cumulative total.
XRP has entered an extreme fear zone according to analytics firm Santiment. The cryptocurrency is seeing the most fear, uncertainty, and doubt since October based on social data analysis.
Santiment noted that XRP is down 31% in the past two months, unlike Bitcoin which has maintained different market situation. The last time XRP experienced near this level of fear from the crowd was November 21st.
Following that November 21st fear reading, XRP price immediately rallied 22% over the next three days. After that rally, greed took over and the price surge came to a quick halt.
XRP sentiment mirrors previous rally setup
Santiment identified days where there are abnormally higher bullish comments compared to bearish comments about XRP, marking these as “Greed Zone” periods. The firm also tracked days with abnormally higher bearish comments compared to bullish comments, designating these as “Fear Zone” periods.
The current sentiment readings show XRP in the fear zone. Santiment stated that “an opportunity appears to be emerging just like 2 weeks ago” based on the similar setup.
XRP price performance shows mixed results across different timeframes. The cryptocurrency is down 3.8% in the last 24 hours and down 5.1% over the past seven days.
The 30-day chart shows XRP down 7.3%, while the one-year performance stands at negative 12.1%. The current sentiment reading comes after a period of volatility for the asset.
XRP ETFs see continued inflows
XRP spot ETFs recorded $12.84 million in daily total net inflow as of December 4. The cumulative total net inflow for XRP ETFs reached $887.12 million according to the latest data.
Four XRP spot ETFs are currently trading in the US market. XRPC on NASDAQ sponsored by Canary leads with $358.88 million in cumulative net inflow. The fund recorded $1.34 million in daily net inflow and 638,920 in single-day XRP inflow.
GXRP on NYSE sponsored by Grayscale holds $211.07 million in cumulative net inflow. The fund saw $2.04 million in daily net inflow and 974,170 in single-day XRP inflow.
XRP on NYSE sponsored by Bitwise recorded $184.87 million in cumulative net inflow. The fund attracted $3.76 million in daily net inflow and 1.79 million in single-day XRP inflow.
XRPZ on NYSE sponsored by Franklin shows $132.30 million in cumulative net inflow. The fund recorded $5.70 million in daily net inflow and 2.72 million in single-day XRP inflow.
Historical ETF data shows strong recent flows
Total XRP spot ETF history data reveals consistent inflows in recent weeks. December 4 recorded $12.84 million in daily inflow. December 3 saw $50.27 million in daily inflow, the second-highest day in recent weeks.
December 2 brought $67.74 million in daily inflow. December 1 recorded $89.65 million and was one of the strongest single-day performances.
Late November showed strong inflow with November 25 recording $35.41 million and November 24 bringing $164.04 million. November 20 saw the largest single-day inflow at $118.15 million.
November 14 was the beginning of inflows with $243.05 million recorded that day. November 13 showed zero inflows as ETFs were just launching.
Santiment’s analysis suggests the current fear readings could present a buying opportunity for XRP. The firm’s historical data shows that extreme fear levels have preceded rallies in the past.
The November 21 example showed how quickly sentiment can shift. XRP rallied 22% over three days after reaching similar fear levels.
Source: https://www.cryptonewsz.com/xrp-enters-extreme-fear-zone-santiment/
