XRP price dipped 3% last week and now trades around $1.34 at press time. The decline brought out the bears on social media. Santiment reported that the ratio of positive to negative commentary on XRP dropped to just 1.1 bullish comments for every 1 bearish comment. That is the most fearful crowd sentiment in three weeks.

Historically, such extreme FUD has often acted as a contrarian buy signal. Let’s analyze the sentiment chart and then look at XRP’s technicals.

Santiment: FUD Zone Flashes – A Historical Dip-Buy Signal

Santiment’s chart (attached) tracks the ratio of positive vs. negative social media comments about the XRP price. The upper zone is marked “FOMO Zone” (crowd greedy), and the lower zone is “FUD Zone” (crowd fearful). On May 25, the ratio fell to approximately 1.1, just above the FUD threshold. That is the lowest reading since early May.

The chart shows previous dips into the FUD zone (around April 24-28, May 1, and May 13) all of which were followed by price stabilization or short-term bounces. Conversely, when the ratio climbed into the FOMO zone above 1.5, XRP often topped shortly after.